The Show Must Go On
Igor Manukhov - Nov 22, 2024
We expect 2025 to be a good year for stocks.
2024 has been a truly remarkable year for stock investors. Performance like this makes you wonder how much longer the good times can last. Earlier this week, BMO’s Chief Investment Strategist Brian Belski released his market expectations for 2025. He expects the market to close at 6,100 in 2024 and 6,700 in 2025. This would represent a 2.5% return by the end of 2024 (from the November 21st close) and another 9.84% return in 2025.
In my chart work, I don’t set targets—I just try to stay with the trend for as long as it lasts. Current market charts suggest that we are still in a bull market. The black line represents the weekly price for the S&P 500, and the purple line represents the 30-week moving average (a longer-term trend). When the black line is above the rising purple line, the bull market is intact, and investors’ bias should lean to the upside. The best times to buy in these markets are during short-term retracements. I have highlighted previous instances with green circles.
It appears that both charts and fundamental analysis suggest that the show must go on.