BNP Paribas, a major banking institution, believes the US stock market is poised for a significant jump. They’re calling it an “unloved rally.”
An Underestimated Upswing
Their analysis shows that institutional investors are currently underinvested in stocks. This is similar to what happened in 2023, a year that saw strong stock market gains. BNP Paribas predicts that as much as $20 billion in buying power could flood the market in the coming week, forcing institutions to jump back in.
According to Greg Boutle, BNP Paribas’ head of US equity and derivative strategy, this influx of investment could lead to the market exceeding expectations. He points out that even negative news doesn’t always mean a downturn.
Other Experts Agree
BNP Paribas isn’t alone in its optimism. Fundstrat’s Tom Lee also sees a positive outlook. He predicted earlier this year that industrial, financial, and tech stocks would outperform the broader market. So far, his prediction has been accurate, with tech stocks recently joining the rally. Lee expects these three sectors to continue leading the market for the rest of the year. He also anticipates increased demand for interest-sensitive stocks in 2024, when the Federal Reserve is expected to cut interest rates, benefiting financials and smaller companies.
Disclaimer
Please remember that this information is not financial advice. Always do your own research before making investment decisions.
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