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Saturday 14 April 2018

RBC lowered its forecast for the S&P 500

The RBC Capital Markets financial institution downgraded its forecast for the broad US index S&P 500, highlighting high political uncertainty.
Now the institution expects levels of the broad index of 2,890 points, compared with the previous expectations of 3000 points. And although a decline, the forecast still points to an index growth of nearly 8% of current levels.
Some of the obstacles to the US index include the fears of a trade war with China and Trump's behavior.
There is also an expectation that the US president may go to impeachment as a result of his not very thought-out comments.
Serious negatives are also infront the technological shares that have lost 7% last month after the Facebook scandal.
The concerns of investors and analysts are that the US government will increasingly look into regulating Facebook's social network and its main competitor - Google.
The technology sector was the best performing sector in the past year, with a growth of nearly 30%. RBC downgraded the market valuation of the sector from "market weight" to "underweight", highlighting the company's high financial estimates in the light of expectations for their quarterly results.
In the last month, the blue chip index S&P 500 fell by more than 5%.


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