Will it or won’t it? That’s the question many investors have when it comes to the S&P and the possibility of it reaching 2,500. Paul Meeks, the CIO of Sloy, Dahl, & Holst, and Tim Lesko recently appeared on CNBC to discuss this topic
Tim Lesko began the discussion by noting that the market has been dominated by earnings growth and revenue ever since April. According to Lesko, this kind of earnings growth is a sign we won’t have a problem getting to and above the 2,500 marker.
Here’s a breakdown of Lesko’s views on the S&P hitting 2500:
We’ll see single-digit earnings growth through the end of the year
Financial markets could easily appreciate at a 10% annualized rate
The easing up of natural disasters and geopolitical headwinds could accelerate the timeline
Paul Meeks also added some interesting thoughts on this subject. He concurred with Lesko’s take, saying that the S&P 500 could easily reach 2500 by year-end.
Meeks also agreed that the fundamentals seem to justify the gains we’ve seen. However, Meeks calls to attention the fact that there are a number of things up in the air that could impact these gains.
Resolving the current budget issue by the end of the month
Keeping an eye on what Trump is going to say next
Seeing what will happen in North Korea
Learning what the Feds will do with interest rates next