Wall Street’s 2022 Outlook For Stocks

Dec 06, 2021

Wall Street's 2022 Outlook For Stocks

Wall Street's top stock market strategists are advising customers about where they believe the stock market will go in the coming year.

Stocks are expected to climb, but gains will be restricted due to high valuations. Earnings growth should be robust, driven by consumer spending and capital spending. Risks include supply chain concerns reoccurring, labor shortages lasting, and monetary policy tightening faster than planned. Most of these forecasts were made prior to the Omicron variant's appearance, but analysts essentially believe that the economy is better equipped for subsequent waves of Covid infections.

The following summarizes 14 of these 2022 S&P 500 forecasts, with highlights from the strategists' remarks. The goals vary from 4,400 to 5,300. The S&P 500 finished Friday at 4,538, implying gains ranging from -3% to +17%:

Barclays - 4,800: "Household and corporate cash hoards could underpin modest profits growth, but supply chain issues, a return to trend in goods demand, and a severe landing in China are important tail risks."

DWS, David Bianco - 5,000: "Earnings growth will boost 2022 returns." Higher volatility, including intra-year sector rotations that might be large depending on actual yield levels."

JPMorgan, Dubravko Lakos-Bujas - 5,050: "While there have been isolated setbacks with COVID-19 variations (e.g. delta, omicron), this must be considered in the context of increased natural and vaccine-acquired immunity, much decreased mortality, and novel antiviral medicines... With this in mind, the most significant risk to our view is a hawkish move in [central bank] policy, particularly if post-pandemic dislocations linger (e.g., longer delays in China reopening, supply-chain concerns, and labor shortages)."

Yardeni Research, Ed Yardeni - 5,200: "Assuming, as I do, that Omicron, the new variant of Covid, will turn out to be no worse than the Delta variant, I still expect the S&P 500 to In reaction to higher-than-expected inflation, the Fed may opt to accelerate tapering. However, it would still be pouring liquidity to the economy's punch bowl, although at a slower rate, given the economy already has plenty of liquidity thanks to prior rounds of the Fed's generosity."

Bank of America, Savita Subramanian - 4,600: "Drivers for our outlook: a higher discount rate, US GDP primacy vs. China, growing capex but slowing consumption, the end of the 'equity shrinkage' bull case."

Jefferies, Sean Darby - 5,000: "Growth – Real and Nominal – is not expected to be an issue in 2022 as the US consumer, business, government, and maybe banks release their spending. However, base effects act against earnings and high values. Thus market multiples are important."

BNP Paribas, Greg Boutle - 5,100: "As rates increase, we anticipate to see some compression of price/earnings ratio multiples." Strong profits growth, on the other hand, may still translate into a 10% total return, in our opinion."

BMO, Brian Belski - 5,300: "An accommodating Fed, meager interest rates, possible peaking inflation, and supply chain issues, and solid profit growth REMAINS a very favorable formula for stocks – PERIOD.”

Goldman Sachs, David Kostin - 5,100: "Decelerating economic growth, a tighter Fed, and increasing real rates mean investors should anticipate moderately below-average returns next year. In periods of robust but decreasing economic growth and rising actual interest rates, the S&P 500 has historically delivered an average 12-month return of 8%..."

Wells Fargo Investment Institute - 5,300: "We anticipate supportive monetary policy, as well as public and private expenditure, to propel equities markets upward throughout the year."

Morgan Stanley, Michael Wilson - 4,400: "With financial conditions tightening and earnings growth stalling, the 12-month risk/reward for the broad indexes appears unfavorable at present levels. Nominal solid GDP growth, on the other hand, should continue to offer active managers with lots of solid stock investment possibilities."

RBC, Lori Calvasina - 5,050: "As for why we feel constructive (aside from the strong economy), cash deployment trends are positive, frothy earnings revisions are no longer an overhang on the market, individual investor sentiment recently turned so bearish that it briefly gave a contrarian buy signal for the stock market in October, and fiscal policy tilts supportive with corporate tax hikes less of a threat. Investors have been concerned about the start of tapering, and the closeness of Fed rises, but equities typically rise after liftoff as long as the economy is strong enough to absorb it."

UBS, Keith Parker - 4,850: "We anticipate S&P 500 EPS to grow to $60 in Q2 '22, inclusive of a tax hit, which would support 5,000+ for the S&P on a 21x trailing P/E. However, slower-than-expected economic growth in H2 '22, as well as a flattening out of quarterly earnings at $60, should imply gains are front-loaded next year."

Credit Suisse, Jonathan Golub - 5,000: "As vacant shelves are refilled, and pricing power is maintained, we see upside to projections. As the unemployment rate falls more and earnings rise, consumer spending should improve.”

Subscribe Our Newsletter

Fortinet's Stock Drops After a Macro Warning. CrowdStrike and Palo Alto Both Trade Lower.

Milena

Fortinet’s Stock Drops After a Macro Warning. CrowdStrike and Palo Alto Both Trade Lower.

An unusually high volume of deals that were supposed to be completed in June have been pushed back to future quarters, affecting Fortinet stock, according to CFO Keith Jensen.

Stocks
The Future of Enterprise-Level Firewalls: What It Looks Like

Muthu Priya

The Future of Enterprise-Level Firewalls: What It Looks Like

Discover the future of enterprise firewalls—AI-driven security, cloud scalability, and automated management. Learn how next-gen firewalls protect against evolving cyber threats.

Technology
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Oliver

What is Cryptocurrency CFD Trading?
A growing number of profitable opportunities emerged as crypto developed. Trading cryptocurrency CFDs is one such opportunity. The practice of day trading, which was first used in the stock market, has also spread to the crypto market. The only difference is that instead of using fiat money, crypto CFDs use cryptocurrencies. CFDs on cryptocurrencies are a fantastic method to trade digital currencies without needing to make a real purchase.

discover
What is the Fear & Greed Index

Levan

What is Fear and Greed Index and How to Analyze It

The Fear and Greed Index allows investors to gauge market sentiment quickly. Here’s how F&G is calculated and how to use it in trading activities.

Investing
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.