Even a government shutdown and the prospect of an unprecedented U.S. government default – no matter how small – couldn’t shake the conviction among equity analysts that stock markets only have further to rise.
Published on Tuesday, the latest Reuters poll collected more than 450 points of data from hundreds of analysts worldwide on how 20 of the world’s biggest stock markets will perform from now until the end of the year.
Some 85 percent of forecasts predicted a positive return for stock markets between now and end-December. Thursday brought firming hopes of a deal to ensure the U.S. does not default on its debt, and global shares have lifted for a second day on Friday. That strong consensus could well prove correct.
Looking further out, optimism increases. 87 percent of forecasts for stock markets’ performance between now and mid-2014 were positive.
For the end of next year, 91 percent of responses showed stock indexes hitting higher levels than Wednesday’s.