He S&P 500 It has already grew 6% since the beginning of the year and is negotiated in a historical maximum of approximately 6,230 points. And fortunately for investors, the famous share index of Wall Street I could continue to go up to reach a surprising record of 10,000 points by the end of the decade.
This is believed by the investigation firm Trivariate Researchof the experienced strategist Adam Parkerwhich based its projection by mentioning the growth of corporate gains, high margins and the rise of artificial intelligence (AI).
“Without a doubt, it is attainable,” he agreed Kenny PolcariMercado Chief Strategy at Slatestone Wealth. “I think there will be obstacles on the road? Without a doubt. But by 2030, I think we could see the S&P 500 reach 10,000 points,” he added.
Wall Street believes that the S&P 500 will advance
In its statement to customers, Parker de Trivarate challenged doubts about the high market assessment and the perspective of a continuous expansion of profit margins. He also stressed that The key lies in productivity and in previous investments made by companies to enhance it.
“We are willing to guarantee an annual 10-11% growth of profits per share as an annual average between now and late 2030,” Parker wrote. The projected figure is slightly higher than the long -term average of S&P 500 of 9%, so it is more than enough to boost index profits.
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For his part, Polcari said The growth projection is ambitious, although not without precedents. As he explained, the advance of AI and the rebound of productivity could sustain an increase in profits of that magnitude.
Productivity will boost actions
Meanwhile, Parker said that Concrete signals of productivity improvements are already observed promoted by AI. A recent example is that of Microsoft, which reported a saving of more than US $ 500 million thanks to the implementation of tools of this class in its customer service.
The Executive anticipated that the type of efficiency profits will be generalized throughout the S&P 500, especially as more companies seek to cut costs and improve margins without compromising growth.
In this framework, he recommended investors Overwater great capitalization sectors such as technology, finance and health care. However, he clarified that reaching 10,000 points will not be so simple, since any type of shock will test the conviction of investors.
“AI and technology are still in their income generation phase and will continue to drive efficiency in all sectors,” said Polcari. “That is what everything can drive up,” he concluded.
Source: Ambito

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