Cramer broadly agrees with Financial institution of America’s bullish evaluation, says subsequent yr might deliver beneficial properties for the S&P 500

CNBC’s Jim Cramer on Tuesday reacted to Financial institution of America‘s bullish outlook for 2024, agreeing that it is attainable S&P 500 might attain 5000 by the tip of subsequent yr.

Financial institution of America strategist Savita Subramanian wrote on Tuesday that she anticipates 2024 as a “inventory picker’s paradise,” saying the financial institution is bullish not as a result of it expects the Federal Reserve to chop charges, however due to what it has already achieved.

“Broadly talking, I really agree with Savita Subramanian at Financial institution of America that we might go to 5000 on the S&P,” he stated. “However apart from sentiment being method too unfavourable, I am non-committal about what might get us there, at the least for now.”

The S&P 500 is seen by most on Wall Avenue as the very best gauge for large-cap U.S. shares, and it closed on Tuesday at 4,538.19. At 5,000, the index may have reached an all-time excessive. After a tricky few months, the S&P 500 has seen a turnaround, advancing 8.4% for the month, it is largest month-to-month enhance since July 2022.

Subramanian wrote the market has moved previous its “most macro uncertainty,” explaining that it has already absorbed vital geopolitical shocks and firms have tailored to greater charges and inflation. She additionally wrote that election years are typically good for equities, however Cramer disagreed, saying he does not anticipate any Washington happenings to make a optimistic affect available on the market.

Although he did not agree with all of Subramanian’s factors, Cramer stated he is optimistic about subsequent yr’s potential for large-cap shares apart from the “Magnificent Seven” tech shares — Apple, Alphabet, Amazon, Nvidia, Microsoft, Meta and Tesla— which have dominated a lot of this yr’s market motion.

“I feel subsequent yr may be concerning the different 493 shares within the S&P, particularly if the FTC stops being so aggressive about blocking mergers, as a result of mergers can be the lifeblood of the following bull market,” he stated.

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Disclaimer The CNBC Investing Membership Charitable Belief holds shares of: Apple, Alphabet, Amazon, Nvidia, Microsoft and Meta.