CNBC’s Jim Cramer reacted to Bank of America’s bullish outlook for 2024 on Tuesday, agreeing that it’s possible the S&P 500 could hit 5,000 by the end of next year.
Bank of America strategist Savita Subramanian wrote Tuesday that she sees 2024 as a “stock pickers’ paradise,” saying the bank is optimistic not because it expects the Federal Reserve to decline its rates, but because of what it has already accomplished.
“Generally speaking, I actually agree with Savita Subramanian of Bank of America that we could go up to 5,000 on the S&P,” he said. “But other than feeling too negative, I’m not committing to what might get us there, at least for now.”
The S&P 500 is considered by most on Wall Street to be the best gauge for large-cap U.S. stocks, and it closed Tuesday at 4,538.19. At 5,000, the index will have reached an all-time high. After a few difficult months, the S&P 500 experienced a turnaround, increasing 8.4% over the month, its largest monthly increase since July 2022.
Subramanian wrote that the market has passed its “maximum macroeconomic uncertainty,” explaining that it has already absorbed significant geopolitical shocks and businesses have adapted to higher interest rates and inflation. She also wrote that election years tend to be good for stocks, but Cramer disagreed, saying he doesn’t expect events in Washington to have a positive impact on the market .
While he doesn’t agree with all of Subramanian’s arguments, Cramer said he’s optimistic about next year’s potential for large-cap stocks other than the ‘Magnificent Seven’ tech stocks – Apple , Alphabet, Amazon, Nvidia, Microsoft, Meta and Tesla – which have dominated much of the market action this year.
“I think next year could be about the other 493 stocks in the S&P, especially if the FTC stops being so aggressive in blocking mergers, because mergers would be the lifeblood of the next bull market,” he said. -he declares.
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of: Apple, Alphabet, Amazon, Nvidia, Microsoft and Meta.