Not in the next 12 months, according Wall Street’s 2018 stock market predictions. According to most major Wall Street firms, the U.S. equity market is in for yet another year of strength—albeit not one as meteoric as 2017.
“We think equities will continue to outperform in 2018,” said Kane Brenan of Goldman Sachs Asset Management in a video published by the company.
The U.S. equity market (as measured by the S&P 500 index) has surged 20% to 2,680 this year as the American economy continued its recovery and investors looked forward to corporate tax cuts promised by the Trump administration. Indeed, some 14 Wall Street banks expect the index to rise another 5% to 2,818 in the coming year courtesy of tax cuts and continued strength in the global economy.