The big banks are forecasting where the S&P500 will end up in late 2020

As the end of the year approaches and the start of the new decade, Wall Street strategists are already meeting their expectations of where markets will close by the end of 2020. Next year will be filled with enough events, including the US presidential election and the next phase of trade talks between the US and China. This is only part of the known and unknown catalysts that will shape the market in 2020, of course.

In recent months, the likelihood of a market melt-up at the beginning of next year has become greater than the likelihood of a recession. According to Wells Fargo, a change in sentiment alone could pose risks to markets in 2020. Their target for the S & P500 at the end of next year is $ 3,388 and an EPS of $ 166, but warns that a correction is possible.

For 2020, investors need to prepare for more volatility, which remained quite low in 2019. The VIX remains under intense pressure at 12 levels, which inspires a sense of calm in the market and reveals the potential for further growth.

However, according to WF, a 10% correction in 1H20 is entirely possible. More specifically, in the months of March / April when the Fed's balance sheet stopped rising. If such a healthy correction occurs, it would provide a great opportunity to shop at the bottom.

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