Wall St experts on where to invest in 2020

Each of the major stock indices is on track to finish the year higher than it started, with the S&P 500 recording its strongest annual results since 2013.

Even the bond market was not excluded from the coupon, due to recessionary fears, which in turn led to a demand for more secure assets. The traditional 60/40 stock / bond portfolio is showing its strongest performance since 1998.

These gains can be explained by the arrival of two large catalysts at the perfect moment.

The first is the reverse of the Fed and other central banks.

Additionally, the market correction from September to December 2018 gave very good levels to investors for cheap purchases.

Overall, stock markets are doing brilliantly - but things are not over.

What are the moods of Wall St's top players for next year and how can we maximize our profits?

Goldman Sachs

S&P 500 Estimate: $ 3400

EPS Target: $ 174

Forecast The title of our expected outlook for 2020 is - "Together we fall, we grow in division", and it clearly emphasizes the importance of the elections to come in less than a year. "Over the next 11 months, the shift in candidates' electoral prospects will affect real-time forecasting markets and sector and stock results. In the next two months, the S&P 500's results will depend on the real election results." We recommend that investors focus on Growth at a Reasonable Price (GARP) - stocks with stable growth profiles. For long-term investors, we prefer value over growth.

JPMorgan

S&P 500 Estimate: $ 3400

EPS Target: $ 180

Forecast: "While investors have been increasing their equity positioning over the past month (following the progress of the first phase of the trade transaction), our assessment is that investors have a net exposure that is close to historical averages." "We encourage investors to prefer overweight from neutral over technology from neutral from overweight.

Bank of America

S&P 500 Estimate: $ 3,300

EPS Target: $ 177

Forecast: “The key calendar event for 2020 is the US presidential election, but we also see some tactical and secular rotations: 1) from bonds to stocks; 2) the US to the rest of the world; 3) global to local; 4) trade war to technology warfare, 5) growth / inertia to value and more "

"Overweight: financial, consumer discretionary, industrial, utilities

"Marketweight: Technology, Communication, Health, Energy

"Underweight: Real Estate, Custom Brackets, Materials"

Morgan Stanley

S&P 500 Estimate: $ 3000

EPS Target: $ 177

Forecast: In the short term, central bank liquidity may help the S&P 500 overcome the upper end of our 3,250 bullish forecast, but by April, liquidity will fade and the market will focus more on fundamentals where uncertainty is more higher than normal. "

UBS

S&P 500 Estimate: $ 3000

EPS Target: $ 170

Prediction: "Although we see a lot of celebration when it comes to stocks (the Fed calms down, cyclicals are relatively valuable, etc.), we don't believe US stocks are still out of the woods." two potential problems: First, forward S&P 500 profits may start to decline in the coming months, as many leading indicators claim, and second, this may happen while PMI is still in a declining trend, adding up to double negative for S&P 500 P / Es. " We expect cyclical companies to make a profit as soon as the leading indicators find their bottom and go up again.

Wells Fargo

S&P 500 Estimate: $ 3,200- $ 3,300

EPS Target: $ 175

Forecast: An aging economic expansion is clouding business decision-making and leading to reduced business confidence and slower capital expenditures. "" We retain our defensive overweight - along with cyclical hedge financials we think is appropriate for risks.

Barclays

S&P 500 Estimate: $ 3,300

EPS Target: NA

Forecast: "Whatever we talk about, financial markets did phenomenally in 2019. It will be very difficult to repeat in 2020." We expect a rapid recovery to uninspiring trend growth, but with reduced economic and political risks. Given the very low return on bids in the major bond markets, we believe this triggers higher values ​​for risky assets. "

Deutsche Bank

S&P 500 Estimate: $ 3,250

EPS Target: $ 175

Forecast: "Our economists believe that GDP growth in the US and the world will continue to slow further, after which it is conditioned by a trade agreement between the US and China, reaching the bottom in the first quarter before recovering modestly next year. Good results for energy companies point to a jump in oil prices in 2020. Good results for financial companies point to a jump in revenue in H2 2019.

Credit Suisse

S&P 500 Estimate: $ 3,425

EPS Target: $ 173

Forecast: Economic data has been slowing down for the past 1+ years, leading to the superiority of low volatility and growth stocks at the expense of value. Given our perspectives on cyclical leadership, we are upgrading economically more sensitive groups, including financial, industrial, materials and energy.

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