Stock Market Predictions for 2018: Is a Crash Coming? Thoughts from S&P, and Other Experts

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It’s hard to predict the future of stock markets, especially during volatility and uncertainty. However, market experts have been able to predict stock market crashes in the past based on the available data. Earlier this year, IMF lowered its growth forecast for the US for 2018 to 2.1% from 2.5%, which raised eye brows in the US and forced investors to pay heed to the incessant calls of the upcoming recession. In this article we will take a look at some of the biggest stock market predictions for 2018. We will also discuss speculations about the stock market crash of 2019 and the future of markets in the coming years.

S&P Forecast for 2018

In June, S&P Global Market Intelligence increased its one-year points target for S&P 500 to 2,575, which shows a 6% upside from the current levels. S&P is one of the biggest market intelligence firms. A bullish call for the market in 2018 by S&P shows that stock markets are expected to show strength in the coming months. S&P 2018 forecast report says that improving global and US GDP and low inflation environments will drive growth in 2018. However, S&P Global portfolio manager Erin Gibbs warned about the highly overvalued tech stocks. She said in a program on CNBC that investors should start investing more in the traditional value stocks instead of the stocks which have a very high momentum.

Morgan Stanley Prediction About 2018

Similarly, stock market predictions by Morgan Stanley for 2018 are also upbeat. The firm reiterated its 2,700 target for S&P 500 earlier this year. This target implies 11% upside from the current levels.

Stock Market Crash is Coming, According to Elliott Wave Theory

Avi Gilburt, the founder of Elliot Wave Trader website, who makes stock market predictions based on the famous Elliott Wave theory, which claims that markets move like waves, and are based on the “herd” mentality and human psychology. Gilburt thinks that the current market will remain bullish through 2018. After hitting its peak next year, stock markets will start wavering and pull back about 20%. After 2020, Gilburt thinks, the bull market will end and we might face the worst stock market crash. He, however, rejects the popular notion that stock market crash is imminent in 2019.

Harvard Economist Says Markets Will Collapse Very Soon

One of the most important stock market predictions about 2018 and beyond recently came from Harry Dent, the man who successfully predicted the economic collapse of Japan, the dot-com bubble burst and most importantly, the 2008 financial crisis. Dent says that the world markets are about to face an economic recession that will be far worse than what we faced in 2008. Dent also says that gold, which is considered a safe haven asset during times of volatility, will collapse to $700 in the coming years.

Bloomberg Poll

Earlier in 2017, Bloomberg conducted a survey to find out what finance experts think about the future of stock markets. The results were not positive. Most of the surveyed analysts believe that the next recession will hit the US markets in 2019. They also believe that the second longest bull-run will start losing steam in mid-2018.