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“Experts” Expect S&P 500 To Rise 20.7% In Near-Term

Caveat emptor!

The S&P 500 closed at 1,920.03 by the end of the third quarter, which was 6.9% lower than its closing price of 2,063.11 during the start of the period. According to FactSet, the price decline was the largest for the index during a third quarter since the 11.4% decline in the third quarter of 2011.

The S&P 500 dropped in the third quarter due to investors concerns regarding a potential slowdown of the global economy. In August, China surprisingly devalued the yuan currency, which caused a global market rout. A number of economic data showed that the Chinese economy is weakening, which ignited concerns that it might spill over and affect the global economic growth.

Despite the ongoing concerns regarding the global economic growth, industry analysts and market strategists predicted that the S&P 500 will increase by double-digit over the near term, according to FactSet.

S&P 500 price estimates

Industry analysts estimated that the bottom-up target price for the S&P 500 would be 2317.68 over the near term— 20.7% higher than its 1920.03...