A market analyst at Barclays believes the S&P 500 presents an opportunity for long-term investors, predicting that the SPX will rise until the end of the year.
In a new CNBC interview, Venu Krishna, managing director and head of US equity strategy at Barclays, he says The S&P 500 is trading below 20x-to-earnings, allowing investors to find shares “at an attractive price”.
According to Krishna, the bank believes that the conflicts in the Middle East will not be a major problem in the market.
“So I think, seriously speaking, our view is that in the history of world crises in the last 10-15 years, a lot has been kept in place, and it settles recently. So I think you can argue that the market has been pressured to follow that view. And already, the problem in the Middle East is bigger in terms of, Saudi Arabia, Bahra, I think that the list of Saudi Arabia is going forward. so there has been a decision and that is why we have looked at it deeply.
Krishna predicts that the S&P 500 will rise to 7,650 by the end of 2026, as he believes that the US can absorb rising oil prices as long as oil remains between $85 and $100.
“At its core, I think the idea is that the US economy is less affected by the crisis compared to the rest of the world. Asia is the most exposed. So is Europe. But the US as an energy exporter is fine…
It will also affect usage. And, on the contrary, by our 7,650, we think that consumption decreases. And we think global economic growth is hitting. But we also think that the US economy will be stable. And that’s how we arrive at those numbers. ”
But if things worsen in the Middle East, Barclays sees the S&P 500 trading at 5,900.
At the time of writing, the S&P 500 is trading at 6,575, indicating a potential upside of about 16% if the SPX hits Krishna’s year-end target.
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