Bloomberg tracks the S&P 500 price targets of the major Wall Street strategists in a weekly survey. This week, Credit Suisse was the first firm to lower its year-end price target this year, even as the market has already declined by 17%. As shown below, Credit Suisse lowered its price target from 1,050 to 920. At the start of the year, the average year-end price target suggested a gain of 16.2% for the S&P 500. Only one firm, Barclays, had a price target that suggested the index would decline for the year. With the S&P 500 down roughly 17% year to date and only one strategist lowering year-end estimates, the average strategist is now looking for a gain of 36% from current levels. Either the index has a lot of catching up to do, or strategists are going to have to once again start lowering estimates just like they did in 2008.
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