{"id":44668,"date":"2023-08-04T22:42:58","date_gmt":"2023-08-05T02:42:58","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/surging-sp-500-targets-finally-caught-up-to-the-stock-market-its-time-to-buy-the-dips\/"},"modified":"2023-08-04T22:43:00","modified_gmt":"2023-08-05T02:43:00","slug":"surging-sp-500-targets-finally-caught-up-to-the-stock-market-its-time-to-buy-the-dips","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=44668","title":{"rendered":"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips."},"content":{"rendered":"
\n
<\/p>\n
<\/p>\n<\/figure><\/div>\n

Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them.<\/p>\n

The week began with a number of strategists lifting their forecasts for the
\n S&P 500 index.<\/span>
\n Citigroup raised its mid-2024 forecast to 5000 from 4400, while Piper Sandler hiked its to 4825 from 4625. <\/p>\n

\n

Even Morgan Stanley\u2019s Mike Wilson, who has a worst-case-scenario target that calls for an 18% downside, acknowledged in his note this past week that the market\u2019s rally could be a sustainable one. <\/p>\n

It\u2019s probably not a coincidence that the stock market had a difficult week, with the S&P 500 dropping 2.3%, the
\n Dow Jones Industrial Average
\n falling 1.1%, and the
\n Nasdaq Composite
\n dipping 2.8%. The S&P 500, after all, entered the week up 28% from its bear-market low in October, and strategists, many caught off guard by the massive rally, have responded by acknowledging what has already happened and marking their forecasts to market. <\/p>\n

Not that there\u2019s anything wrong with that. If we learned anything this past week, it\u2019s that the economy remains resilient, but not so strong that it forces the Federal Reserve to do something unexpected. The U.S. added just 187,000 jobs in July, according to the latest payrolls report, and earlier months were revised lower. Chalk that up as one more sign that a soft landing is still a possibility. <\/p>\n

Earnings, too, have been stronger than expected\u2014
\n Amazon.com
\n (ticker: AMZN), which gained 8.3% after its report, was a particular standout\u2014which was especially important, given the S&P 500\u2019s premium valuation.<\/p>\n

Yet rushing to buy after the S&P 500 has had its best first seven months of the year since 1997 feels, well, unnecessary. It doesn\u2019t change the fact that the index is still expensive at just over 19 times 12-month forward earnings, up from about 15 times at the start of the rally, or that stocks like
\n Apple
\n (AAPL), which had helped drive the rally, are showing signs of topping out. It all reeks of desperation and the fear of missing out.<\/p>\n

\u201cThe bears are finally throwing in the towel, and we are now beginning to see some examples of FOMO,\u201d says Michael Arone, chief investment strategist at State Street Global Advisors. \u201cAs that happens, I get increasingly more anxious.\u201d <\/p>\n

Arone warns of a potential drawdown. History bears him out\u2014and not just because it\u2019s summer, a historically weak period for the market. A quick glance at a chart of the average S&P 500 target superimposed over the index itself shows that Wall Street forecasts are, at best, a coincident indicator and, at worst, a lagging one. In 2022, for instance, they peaked just after the market did in January of that year. <\/p>\n

Of course, the market always needs a reason to fall, and this past week it found one in surging Treasury yields. It\u2019s hard to tell exactly what made them pop. Though some blamed Fitch\u2019s downgrade of the U.S. credit rating to AA+ from AAA, it\u2019s more likely a combination of massive issuance\u2014the Treasury said it plans to issue more debt than had been expected\u2014and solid economic data that forced market participants to reconsider their growth targets. Higher yields make stocks worth less, all else being equal. As long as they don\u2019t rise too much, though, it could present a buying opportunity. <\/p>\n

That\u2019s especially true as markets look ahead to 2024. Some 61 S&P 500 companies that had reported second-quarter earnings raised profit guidance as of Tuesday, while 23 had cut outlooks, according to Wells Fargo. That\u2019s partly why analysts expect sales and earnings to grow next year. <\/p>\n

\u201cThe market\u2019s looking at 2024,\u201d says Doug Bycoff, chief investment officer of the Bycoff Group. \u201cIf we get a 5% pullback, we\u2019re going to be waiting to pounce.\u201d <\/p>\n

In other words, don\u2019t buy when everyone is excited\u2014buy on dips. <\/p>\n

<\/p>\n
<\/p>\n<\/figure><\/div>\n

Write to <\/strong>Jacob Sonenshine at jacob.sonenshine@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them. The week began with a number of strategists lifting their forecasts for the S&P 500 index. Citigroup raised its mid-2024 forecast to 5000 from 4400, while Piper Sandler hiked its to 4825 from 4625. Even Morgan […]<\/p>\n","protected":false},"author":1,"featured_media":44669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-44668","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nSurging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them. The week began with a number of strategists\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=44668\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them. The week began with a number of strategists\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=44668\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-05T02:42:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-05T02:43:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1691203379_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=44668#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=44668\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips.\",\"datePublished\":\"2023-08-05T02:42:58+00:00\",\"dateModified\":\"2023-08-05T02:43:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=44668\"},\"wordCount\":678,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=44668#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=44668\",\"url\":\"https:\/\/ifintechworld.com\/?p=44668\",\"name\":\"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-05T02:42:58+00:00\",\"dateModified\":\"2023-08-05T02:43:00+00:00\",\"description\":\"Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them. The week began with a number of strategists\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=44668#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=44668\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=44668#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips. | iFintechWorld","description":"Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them. The week began with a number of strategists","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=44668","og_locale":"en_US","og_type":"article","og_title":"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips. | iFintechWorld","og_description":"Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them. The week began with a number of strategists","og_url":"https:\/\/ifintechworld.com\/?p=44668","og_site_name":"iFintechWorld","article_published_time":"2023-08-05T02:42:58+00:00","article_modified_time":"2023-08-05T02:43:00+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1691203379_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=44668#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=44668"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips.","datePublished":"2023-08-05T02:42:58+00:00","dateModified":"2023-08-05T02:43:00+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=44668"},"wordCount":678,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=44668#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=44668","url":"https:\/\/ifintechworld.com\/?p=44668","name":"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-05T02:42:58+00:00","dateModified":"2023-08-05T02:43:00+00:00","description":"Stocks have soared, and Wall Street is raising its S&P 500 targets. Please do your best to ignore them. The week began with a number of strategists","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=44668#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=44668"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=44668#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Surging S&P 500 Targets Finally Caught Up to the Stock Market. It\u2019s Time to Buy the Dips."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/44668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44668"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/44668\/revisions"}],"predecessor-version":[{"id":44670,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/44668\/revisions\/44670"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/44669"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}