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BMO's Brian Belski raised his S&P 500 price target to 6,100, signaling 7% upside by year-end. In a note on Thursday, Belski raised his S&P 500 price target for 2024 to 6,100, representing potential upside of 7% over the next three months. Belski's prior 2024 price target for the S&P 500 was 5,600. AdvertisementBelski also finds it encouraging that recent stock market gains have not been concentrated in just the mega-cap technology stocks. AdvertisementBased on Belski's 6,100 price target, that implies a price-to-earnings ratio of 24.4x, which is above historical averages.
Persons: Brian Belski, , Belski, Belski's Organizations: Service, BMO, Wall, Federal, Fed
The bulls on Wall Street have been largely right about the stock market over the past two years. Business Insider asked three bullish stock strategists what they consider the biggest risks. Yet, those economists have been largely wrong about what could sink the stock market and economy. "In May/June, when you had a lot of bears or those that had been late to jump on the bull parade all of a sudden switch their forecasts and kind of chase markets up, which is pretty, I mean pretty, pretty, pretty classic," Belski told Business Insider. The second risk is, similar to Belski's concern, a 1990's type melt-up in the stock market.
Persons: , Brian Belski, Belski, Yardeni Research's Eric Wallerstein Eric Wallerstein, Wallerstein, that's, Carson, Sonu Varghese Sonu Varghese, Varghese Organizations: Business, Service, BMO, Nvidia, Yardeni Research, Carson Group, Federal Locations: Russia, Ukraine, China, Taiwan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailA little worried about markets on a short-term sentiment basis, says BMO Capital's Brian BelskiBrian Belski, BMO Capital chief investment strategist, joins 'Squawk on the Street' to discuss if he feels pressure to chase gains further, Belski's thoughts on financials, and much more.
Persons: Brian Belski Brian Belski Organizations: BMO, BMO Capital
Trade Tracker: Brian Belski's latest trades
  + stars: | 2024-06-03 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTrade Tracker: Brian Belski's latest tradesBrian Belski, chief investment strategist at BMO Capital Markets, joins 'Halftime Report' to detail his latest portfolio moves.
Persons: Brian Belski's, Brian Belski Organizations: BMO Capital Markets
However, there's an easy way to invest in real estate without breaking the bank or even leaving the couch: buying real-estate stocks, which BMO Capital Markets finds increasingly attractive. But, contrary to what many investors believe, higher rates don't always hurt real-estate stocks, Belski wrote. AdvertisementThe market's misleading narrative about real-estate stocks has made the group remarkably cheap relative to its solid fundamentals, in Belski's view. "The severity of underperformance appears mismatched with the fundamental underpinnings of the group," Belski wrote. 13 real-estate stocks set to outperformInvestors looking to diversify their portfolios should consider 13 stocks in the real-estate sector with outperform ratings from BMO Capital Markets.
Persons: , Brian Belski, Belski, it's Organizations: Service, Business, BMO Capital Markets, BMO, doesn't Locations: Montreal
There have been 13 other market selloffs during the second year of a bull market since 1946, Belski noted. AdvertisementFollowing its 2021 pullback, the S&P 500 finished the second year of its bull market up 22.6% and 11.5% higher than its nadir. Valuations are still historically high, and mega-cap growth companies continue to make up a disproportionately large share of the S&P 500. Since Belski thinks this bull market has legs, he doesn't want to forgo future upside. These firms have higher earnings growth than the median S&P 500 name and also have lower price-to-earnings (P/E) and P/E-to-growth (PEG) ratios — a recipe for success.
Persons: , pales, Keith Lerner, Truist, Lerner, who've, Brian Belski, he's, Belski, selloffs Organizations: Service, Business, BMO Capital Markets, selloffs
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailS&P 500 should end 2024 at current levels around our price target of 5,100, says BMO's Brian BelskiBrian Belski, BMO Capital Markets chief market strategist, joins 'Squawk on the Street' to discuss what Belski expects from equity performance, if bond yields change Belski's long-term market thesis, and more.
Persons: Brian Belski Brian Belski Organizations: BMO Capital Markets
US stocks could be stuck in quicksand for the rest of 2024 despite robust earnings growth, but investors shouldn't panic. Wall Street expects double-digit earnings growth in 2024. The consensus estimate for S&P 500 profits is about $244, which would be up from $220 in 2023. The so-called SMID-cap cohort lagged its larger peers again in the first quarter, posting a solid 7.6% total return, while the S&P 500 surged 10.6%, including dividends. Six sell-side research analysts cover the typical stock in the SMID-cap S&P 1000 index compared to 17 analysts for the average S&P 500 member, Belski wrote.
Persons: Brian Belski, Belski, Evercore ISI's Julian Emanuel Organizations: Business, BMO Capital Markets, BMO
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're excessively worried about markets from a sentiment perspective, says BMO's Brian BelskiBrian Belski, BMO Capital Markets chief investment strategist, joins 'Squawk on the Street' to discuss Belski's overall attitude towards equity markets, if the market's placing too much priority on Federal reserve rate cuts, and more.
Persons: Brian Belski Brian Belski Organizations: BMO Capital Markets
COVID), and active funds are hugging their benchmarks," Subramanian wrote in a note about her 2024 outlook. "We're bullish not because we expect the Fed to cut, but because of what the Fed has accomplished," Subramanian wrote. BMO Capital MarketsBofA analysts are calling for slower inflation, better profit margins, and improved efficiency, Subramanian wrote. BMO is less optimistic about energy stocks since they've lagged behind oil prices in the last year. Consumer discretionary is a strong bet if interest rate hikes are over and consumers keep spending, Subramanian wrote.
Persons: Brian Belski, Belski, Savita Subramanian, Subramanian, Bank of America BMO's Belski, he's, boomers, BofA Organizations: Bank of America, BMO Capital Markets, Business, BMO, Federal Reserve, " Bank of, Energy, BMO isn't Locations: Ukraine, Israel
The stock market is set up for a year-end rally that could blow away Wall Street estimates, according to BMO Capital Markets. The U.S. stock market has outpaced expectations for much of 2023, largely shaking off higher interest rates and the regional bank crisis in the spring. Even with an August slump for the stock market, the S & P 500 is still up 16% year to date. .SPX YTD mountain The S & P 500 is up 17% year to date. Belski's official year-end prediction for the S & P 500 is still 4,550, which is about 1.2% above where the index closed Tuesday.
Persons: Brian Belski, Belski, — CNBC's Michael Bloom Organizations: BMO Capital Markets, Chief, CNBC Market, Federal Reserve Locations: U.S
But leading strategists at BMO don't see that narrow breadth as a serious concern. Investors shouldn't be too unsettled by the bad breadth in the stock market this year, according to top strategists at BMO Capital Markets. BMO Capital MarketsThose tech giants have beaten the broader market each of the first five months of 2023 and have crushed the S&P 500 overall. BMO Capital Markets"We found that narrow market breadth in general does not represent a bad omen for S&P 500 performance despite the contrary narrative being pushed by many investors," Belski wrote. Such scenarios have put the S&P 500 in positive territory 100% of the time in the following three and six months, with returns of at least 6%, Belski noted.
Persons: Brian Belski, Belski Organizations: BMO, BMO Capital Markets, Microsoft, Nvidia, BMO Capital
The stock market could be volatile and stay rangebound for the foreseeable future — but that doesn't mean investors should sit it out, according to BMO. The Canadian bank's year-end target of 4,300 for the S & P 500 implies just a 3.2% upside from where the broad index finished Monday. "Nonetheless, investors should remain opportunistic by employing active decision-making, in our view, as our analysis suggest that plenty of investment opportunities still exist even during range-bound market periods." He screened for stocks that have forword price-to-earnings multiples below the S & P 500 and forword earnings per share growth that's greater than the S & P 500's. The Delaware company also missed revenue expectations, reporting $3.02 billion against the $3.10 billion anticipated.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email2023 market weakness has been pulled forward and a stock pullback has begun, says BMO's BelskiBrian Belski, BMO chief investment strategist, joins the 'Halftime Report' to discuss what's happened since his last appearance on CNBC, Belski's thoughts on fighting the Federal Reserve and more.
BMO Capital Markets isn't changing its S&P 500 price target of 4,300 heading into 2023. Here's a look at BMO's 2023 market outlook as well as 11 US stocks to buy now. That environment means active stock-picking — not passive index investing — is now the key to outperformance, Belski wrote. In Belski's base case, S&P 500 earnings will fall 5% in 2023, which would be the biggest decline in corporate earnings since 2015 (excluding 2020). A recession in the US is "almost inevitable" in 2023, Belski wrote.
i'The stock market can still rise in the face of high interest rates, according to BMO's Brian Belski. "Our work shows that the S&P 500 has historically performed quite well in higher interest rate environments," Belski said. For one, higher interest rates impact a company's cost of capital and could reduce profits if they have to pay more interest when raising debt. Additionally, higher interest rates offer investors an alternative to stocks in the form of higher-yielding bonds and money market funds, which is especially appealing after a decade of near-zero interest rates. "History tells us that a higher interest rate backdrop does not represent a detriment to US stocks."
BMO's Brian Belski is the last bull to cut his year-end price target for the S&P 500 amid high inflation. In a Friday note, Belski cut his S&P 500 price target to 4,300 from 4,800. Belski initially set a 2022 year-end price target of 5,300 late last year. Belski lowered his price target mainly due to higher inflation, which was top of mind on Thursday following September's higher-than-expected CPI report. Any kind of relative rate of change with respect to positive [news], people are going to rush in and buy stocks," Belski said.
Watch CNBC's full interview with BMO's Brian Belski
  + stars: | 2022-10-14 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with BMO's Brian BelskiBrian Belski, BMO chief investment strategist, joins 'Halftime Report' to discuss Belski's price target for the S&P 500, how stocks will perform if the Federal Reserve keeps raising rates, and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe will transition into more normalized returns and earnings growth in '23, says BMO's Brian BelskiBrian Belski, BMO chief investment strategist, joins 'Halftime Report' to discuss Belski's price target for the S&P 500, how stocks will perform if the Federal Reserve keeps raising rates, and more.
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