Buy stock dips because the S&P 500 could ‘easily’ reach 3,500 next year, says Credit Suisse

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Our call of the day, from Andrew Garthwaite, Credit Suisse’s global equity strategist, has a list of reasons why investors should keep buying any dip in stocks.

After an unsurprisingly gloomy economic assessment from Federal Reserve Chairman Jerome Powell on Wednesday, some are pondering whether markets would take cheer from data that may secure more stimulus down the road. So far that theory is not panning out, as the data is out and equity futures are down, on what is also a big day for earnings.

And Garthwaite believes real bond yields — 10-year Treasury inflation-protected securities that have been tumbling on COVID-19 worries — are headed to minus 2%. “Why do you own a bond if it’s a non-diversifying return-less risk? As a result of that, we’ve seen flows into equities hold up abnormally well,” he says.

Garthwaite has a last bit of insight, and that is about the big technology stocks, which report earnings on Thursday and have been in the driver’s seat of market gains this year. Question: Will momentum fade if we get a vaccine or the virus recedes? The chart German stocks DAX, -2.79% are slumping after the biggest gross domestic product drop since 1970.

 

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Love how the article photo is just a bunch of millennial bro’s too. Really trying to nail those Robinhood SHEEPS

short stocks maybe

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