2016 Stock Market Outlook From 14 Top Wall Street Strategists

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Citigroup
> S&P 500 target:
2,200

Citi sees about 7% upside in stocks, despite lowering equities to a Neutral weighting. Citi also warned of an above-average chance that the economy could dip back into a recession. That is not set in stone, but the firm is less positive in equities than in the past.

Credit spreads, an earnings dip, metals and transports, margins and low sentiment were all listed as concerns.

Credit Suisse
> S&P 500 target:
2,150

The firm sees stocks trading near fair market value for the first time in about five years. It thinks this is a time to trim equity weightings, having previously seen a mid-2016 S&P 500 target of 2,200.

Elsewhere, Credit Suisse sees the MSCI emerging market index offering roughly 15% potential US dollar upside to year-end 2016.


Credit Suisse recommended overweight positions on China, Korea, India, Mexico, Malaysia and Turkey, and the firm sees being underweighted in Brazil, Russia, Thailand, Philippines and Poland.

Credit Suisse also has been making controversial stock calls: it removed GE from the focus list, but now likes the Alcatel-Lucent/Nokia merger and is now somehow bullish on BHP.

Goldman Sachs
> S&P 500 target:
2,100

The Goldman target was based on 2.2% average growth in 2016 and 2017, with a P/E ratio of 16.2. What stood out was that the firm thinks earnings can grow close to 10% due to a potential recovery of energy profits. That means caveats.

Here is why Goldman added Apple to its Conviction Buy List in November.