Why Stocks Are Poised To Soar in 2021
Zacks Investment Research | Jan 08, 2021 04:17AM ET
Since the pandemic lows in late March last year, the Dow has surged by more than 70%, the S&P by 74%, the Nasdaq by 99%, and the small-cap Russell 2000 by more than 116%!
It’s been a record-setting move.
But the best part is that it looks like there’s a lot more upside to go.
That was echoed by Goldman Sachs (NYSE:GS) when they forecast the market to hit 4,300 by the end of 2021 (+12.4% from here); and 4,600 by the end of 2022 (that’s another +7.0% on top of that). All in all, that represents a 20.3% increase from where we are today.
And if you get into the right stocks and industries, your gains could be far greater than that.
These are historic times for both the economy and the market.
And if you play it right, you could transform your portfolio.
History In The Making
Q3 GDP just showed a 33.4% growth rate, which was the largest in history.
Q4 GDP is forecast at 8.5%, which, aside from last quarter, would be the highest quarterly growth rate in 31 years.
Full year GDP for 2021 is expected to grow at the fastest pace in 38 years.
We’ve seen record job growth over the last 7 months (even with Friday’s decline for December).
Home sales recently hit a 15-year high.
Retail sales have hit an all-time high.
And interest rates, which are near zero, are at all-time lows, and are expected to stay that way for the next 3 years or longer.
With all of these bullish economic records being made, it should come as no surprise that stocks have been setting records as well with all of the major indexes having just recently broken out to new all-time highs of their own.
Continued . . .
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