"TINA Trade Revival: Analysts Increase S&P 500 Forecasts Amid Market Rally"

Analysts at Goldman Sachs and Bank of America raised their end-of-year target forecasts for the S&P 500, suggesting the great rotation out of US equities earlier this year may have been an overcorrection. The TINA trade, or “There Is No Alternative [to US equities],” remains strong, with US households committing a record 49% of their financial assets to equities this year.

Goldman Sachs cited recent inflation data and corporate surveys showing less tariff pass-through than expected, as well as the likelihood of future interest rate cuts. The return of the TINA trade has led to a market rally, but concerns have been raised about the lack of broad participation in the rally. Only 10% of S&P 500 stocks are driving index returns since April, down from the historical average.

Major financial institutions like BofA, Citigroup, Barclays, and Deutsche Bank have raised their year-end outlooks for the S&P 500, with targets increasing above 6,000. The S&P 500’s monthly traded value in June exceeded that of the Stoxx Europe 600 index, indicating continued investor confidence in US equities despite global economic uncertainties.

Read more at Yahoo Finance: Improving S&P 500 Outlook Signals Revival of TINA Trade