investing Archives - Runnymede Capital Management

Wall Street strategists expecting more gains in 2022

This is one of my favorite posts to write every year as we get to look back on Wall Street predictions and see how they panned out. We have done this in 2014, 2015, 2016, 2017, 2018, 2019, 2020, and 2021 so it is a tradition to see which strategists did well and which missed the mark.

Last year, the strategists predicted a solid up year market for 2021 with an average target of 4076 or +8% for the S&P 500. I noted that “this is one of the most bullish predictions since 2014” and that proved to be the case. Even though the strategists were bullish, they weren't bullish enough as the market put up its second straight year of double-digit gains and 2021 was up over 20%.

Last year's biggest bull was JP Morgan's Dubravko Lako-Bujas at 4400 and he fell well short of the S&P's current 4681. John Stotlzfus and David Kostin were tied with the 2nd most bullish forecasts of 4300.

Now let's take a look at their thoughts on 2022…

Chris Wang on Reuters TV: Investors look through COVID wave

On Friday afternoon, I had the pleasure of returning to Reuters TV to have a quick conversation with anchor Fred Katayama (@Freddiethekat). We discuss the surprising drop in consumer sentiment and why investors appear to be looking through the current Delta COVID wave. Corporate earnings remain extremely strong and with vaccination rates high in the US, this COVID wave should be shorter lived.

Don’t Fear the Delta Variant

Over the weekend, news headlines focused on rising COVID case counts and fear over the impact of the Delta variant. While we may be headed for a 3rd wave here in the US, don't fear the Delta variant, especially if you are vaccinated.

China Shatters Box Office Record

Last year as the pandemic broke out in China, we looked to the east for signs of what life may be like dealing with lockdowns and a slow return from lockdowns.

The Tidal Wave of Retail Spending Has Begun

For much of 2020, we were locked in our homes and have been waiting for life to return to normal. Thanks to government transfer payments, even those who lost their jobs saved money. According to the New York Times, in 2020, personal income increased by over $1 trillion and spending decreased by over $530 million. This means that American consumers are sitting on a $1.5 trillion war chest that is ready to be unleashed in the years ahead. If January retail sales are a hint of what's to come in 2021, retail spending will be powerful.

Is Your Portfolio Ready for the Great Re-Opening?

It was a year ago when COVID fears rocked the financial markets and pushed economies into lockdown. While all of us had hoped that it would end in short order, we still find ourselves socially distanced and are just passing the peak of the 2nd wave. The good news is that cases are falling quickly and vaccinations are on the rise. With the Great Re-Opening coming, we will be ready to emerge from our homes in a big way.