According to researchers from BofA Goldman Sachs, the SP 500 bull run will finally end in 2025. It is worth noting that the tech-heavy SP 500 has been in the bull cycle for the last 2 years.
According to Goldman Sachs, the end-2025 price for the SP 500 is 6500. This is similar to the forecast made by most other analysts. Similarly, Bank of America has also set a price target of 6666 for the SP 500 index.
If the SP 500 ends the year 2025 around 6500, it would be a gain of almost 7%. While this will be a good return, it will be lower than the returns from the last few years.
If the Bank of America's target is achieved, the SP 500 will move higher by 10% before the 2025 ends.
However, there's no doubt that these returns will be below what the market has been used to in the last few years. Also, the projections for the year 2024 by big research houses and banks were also wrong.
So, there's no saying with certainty that the SP 500 price targets set by BofA and Goldman Sachs are accurate. The SP 500 may end the year near these targets, fall below it, or even cross it.
For example, Goldman Sachs had forecasted an 8% increase in the SP 500 for the year. Similarly, the Bank of America also had a similar forecast while the actual returns were way higher.
Most of the forecasts put the SP 500 index in the 6500 - 6700 range for the year 2025. However, Deutsche Bank has set a more bullish target at 7000 for the SP 500 index. If that target is achieved, the US stock market will give a return of almost 15%.
According to Deutsche Bank, risk appetite is the key reason behind the increased inflows. With the unemployment rate at 4% and a growth of 3%, it makes sense for the risk appetite to increase.