As the stock market continues to soar to all-time highs, investors are asking whether the S&P 500 will push above 4,600 points before the end of the year. After hitting a record high of 4,588 in August, the S&P 500 has hugged the 4,500 level for the last few months, refusing to break above the psychological barrier of 4,600.
Many analysts believe that the stock market is overdue for a correction or a pullback, as stock prices have remained in a relatively tight range for far too long. In this environment, breaking above 4,600 points may not be plausible.
However, there are still a handful of reasons why the S&P 500 could push above 4,600 before the close of 2020.
First, the economic recovery in the U.S. has been faster than expected. Despite a downturn in GDP, retail sales have recovered rapidly, and employment is slowly returning to pre-pandemic levels. This improved economic picture will likely boost investor confidence and push stocks to higher levels.
Second, many investors are looking past the pandemic and have already started to invest in the stocks of the future. With companies like Tesla leading the charge for the 21st century, investors are beginning to pour money into disruptive new technologies that have the potential to drive the stock market to new highs.
Third, there is still ample room for companies to grow as the economy recovers from the pandemic. Many companies are being “priced for perfection” and still have big earnings and revenue potential. As companies realize this potential, investors will be encouraged to buy more stock and drive prices higher.
Ultimately, whether the S&P 500 will break past 4,600 before the close of 2020 depends on both the virus’s trajectory and investors’ willingness to take on risk in the current market environment. If the virus continues to spread and the economic outlook grows darker, it is unlikely that the S&P 500 will break this level. However, if economic growth continues to accelerate and investors get more bullish on the stocks of the future, then breaking this level may be within reach.
As the stock market continues to soar to all-time highs, investors are asking whether the S&P 500 will push above 4,600 points before the end of the year. After hitting a record high of 4,588 in August, the S&P 500 has hugged the 4,500 level for the last few months, refusing to break above the psychological barrier of 4,600.
Many analysts believe that the stock market is overdue for a correction or a pullback, as stock prices have remained in a relatively tight range for far too long. In this environment, breaking above 4,600 points may not be plausible.
However, there are still a handful of reasons why the S&P 500 could push above 4,600 before the close of 2020.
First, the economic recovery in the U.S. has been faster than expected. Despite a downturn in GDP, retail sales have recovered rapidly, and employment is slowly returning to pre-pandemic levels. This improved economic picture will likely boost investor confidence and push stocks to higher levels.
Second, many investors are looking past the pandemic and have already started to invest in the stocks of the future. With companies like Tesla leading the charge for the 21st century, investors are beginning to pour money into disruptive new technologies that have the potential to drive the stock market to new highs.
Third, there is still ample room for companies to grow as the economy recovers from the pandemic. Many companies are being “priced for perfection” and still have big earnings and revenue potential. As companies realize this potential, investors will be encouraged to buy more stock and drive prices higher.
Ultimately, whether the S&P 500 will break past 4,600 before the close of 2020 depends on both the virus’s trajectory and investors’ willingness to take on risk in the current market environment. If the virus continues to spread and the economic outlook grows darker, it is unlikely that the S&P 500 will break this level. However, if economic growth continues to accelerate and investors get more bullish on the stocks of the future, then breaking this level may be within reach.
