A less volatile year is ahead for markets, should a forecast by UBS Global Wealth Management’s Nadia Lovell play out.
“Next year, we think financial markets will discover what normal looks like from a growth and an inflation standpoint,” the firm’s senior US equity strategist said in an interview on Bloomberg TV’s Surveillance. “In that environment, the S&P can reach 5,000 by the time we get to June of next year.”
After the tumult of pandemic, Lovell sees US economy more fully reopening as vaccines proliferate, likely easing effects of health crisis. In Lovell’s view, most of the growth will be generated in first half of next year, with the stock index only adding about another 100 points from June to the end of 2022, meaning an overall increase of about 8% from current levels.