3. The S&P 500 will end the year at 2,188.
The marker will depend “on how many times the Fed raises interest rates,” Heath says. “The Fed doesn’t want to raise rates too high, too fast because that will only further strengthen the dollar as investments in Treasuries increase. Likewise, they don’t want to be too slow if labor market and inflation data indicate the economy is heating up. So, if the Fed hits the Goldilocks pace of rate increases, the stock market will probably dip a bit immediately after the rate hikes, but bounce back fairly quickly. In all cases of rate hikes dating back to 1982, the market dipped but then by a year later, had rebounded.” 