On Tuesday, CNBC’s Jim Cramer responded to Bank of America’s optimistic forecast for 2024, concurring that it’s plausible for the S&P 500 to reach 5000 by the end of next year. Bank of America’s strategist, Savita Subramanian, stated on the same day that she foresees 2024 as a “stock picker’s paradise.” She expressed bullishness not due to expectations of the Federal Reserve cutting rates, but because of what it has already achieved.
“Broadly speaking, I actually agree with Savita Subramanian at Bank of America that we could go to 5000 on the S&P,” Cramer stated. “But other than sentiment being way too negative, I’m non-committal about what could get us there, at least for now.”
According to Subramanian, the market has surpassed its “maximum macro uncertainty” and has absorbed significant geopolitical shocks, while companies have adapted to higher rates and inflation. She also mentioned that election years are usually beneficial for equities, although Cramer disagreed, stating that he doesn’t foresee any Washington events positively impacting the market.
Even though he didn’t agree with all of Subramanian’s arguments, Cramer expressed optimism about the potential of large-cap stocks other than the “Magnificent Seven” tech stocks that have dominated much of this year’s market action. He also added, “I think next year might be about the other 493 stocks in the S&P, especially if the FTC stops being so aggressive about blocking mergers, because mergers would be the lifeblood of the next bull market.”
Additionally, Cramer pointed out the CNBC Investing Club as an opportunity to follow his every move in the market, and stated the CNBC Investing Club Charitable Trust holds shares of: Apple, Alphabet, Amazon, Nvidia, Microsoft, and Meta.
