CNBC’s Jim Cramer on Tuesday responded to Bank of America’s bullish 2024 outlook, agreeing that it’s possible the S&P 500 will hit 5,000 by the end of next year.
Savita Subramanian, a strategist at Bank of America, wrote on Tuesday that she expects 2024 as a “stock-picking paradise,” saying the bank is optimistic not because it expects the Fed to cut interest rates, but because of what it has already accomplished.
“In general, I actually agree with Savita Subramanian at Bank of America that we can get to 5,000 on the S&P,” he said. “But other than the sentiment being very negative, I’m non-committal about what could get us there, at least for now.”
Most people on Wall Street view the S&P 500 as the best measure of large-cap U.S. stocks, and it closed Tuesday at 4,538.19. At 5000, the index will have reached its all-time high. After a tough few months, the S&P 500 saw a turnaround, advancing 8.4% during the month, the largest monthly gain since July 2022.
Subramanian wrote that the market has crossed “maximum macro uncertainty,” explaining that it has already absorbed significant geopolitical shocks and companies have adapted to higher inflation rates. She also wrote that election years tend to be good for stocks, but Cramer disagreed, saying he did not expect any events in Washington to have a positive impact on the market.
Although he didn’t agree with all of Subramanian’s points, Cramer said he was optimistic about next year’s potential for large-cap stocks other than the “magnificent seven” tech stocks — Apple, Alphabet, Amazon, Nvidia, Microsoft, Meta and Tesla. Which dominated most of the market movement this year.
“I think next year could be about the other 493 stocks in the S&P, especially if the FTC stops being so aggressive about blocking mergers, because mergers will be the lifeblood of the next bull market,” he said.
Open an account now For CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust owns shares in: Apple, Alphabet, Amazon, Nvidia, Microsoft and Meta.
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”