BofA raised its forecast for the S&P500 at the end of the year: how to invest from Argentina

BofA raised its forecast for the S&P500 at the end of the year: how to invest from Argentina

Indicators are showing bullish signs of stronger earnings growth in the near future and “surprising” resilience in profit margins.


Bank of America (BofA) improved its forecast for the market US stocks this year. Savita Subramanian, the bank’s equity strategist, set a year-end target of 5,400 points for the S&P 500, which implies around a 5% increase compared to Friday’s close, according to ‘Bloomberg’.

The indicators are showing bullish signals on a Stronger earnings growth in the near future and a “surprising” resistance in profit marginscommented the expert.

BofA’s price target of 5,400 points for the S&P 500 in 2024 is now among the most optimistic on Wall Street, Bloomberg notes. Subramanian joins Ed Yardeni of Yardeni Research and Jonathan Golub of UBS Group, who have the same forecast for the S&P by the end of the year.

In the middle of last month, Goldman Sachs experts raised their forecast for the index and now believe that it could close 2024 at 5,200 points.

The fever of artificial intelligence and good performance of big technology companies is driving these forecast updates. In recent weeks, Piper Sandler & Co, UBS and Barclays have also raised their targets. Goldman Sachs and UBS have already raised their outlooks twice since December.

What is the S&P500

The index Standard & Poor’s 500, Also known as S&P 500, it is considered eThe most representative index of the real market situation. This is based on the market capitalization of the 500 most important companies in the United States, including Apple, Microsoft, Google and Amazon.

It differs from other financial market indices due to the diversity of its composition and weighting methodology.

How to invest in the S&P500

  • Open a client account in a brokerage company.
  • Deposit funds to your client account
  • Buy Cedears S&P500 ETF (has this ticker: SPDR S&P 500). It is bought in pesos but is tied in dollars.

What are the advantages of investing in CEDEARs ETFs?

  • They allow access from Argentina to instruments whose performance follows the most important US indices.
  • Allow diversify your portfolio with a single asset. Each ETF has in its portfolio all the assets that make up the index it follows.
  • They toast hedge against the dollar: As with all CEDEAR, they link your portfolio to the variation in the exchange rate.
  • Allow be part of sectors that have low or no exposure from Argentina such as disruptive technologies (ARKK), small capitalization companies (IWM) or emerging markets (EEM).
  • You can invest no need to perform exchange operations or have an account abroad.

Source: Ambito

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