Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, forecasts that advancements in artificial intelligence will propel earnings growth and push the S&P 500 Index to an all-time high by the end of the year. Known for her accurate bullish predictions last year, Bartels anticipates a 12% rise in U.S. stocks by the end of 2025.
In her mid-year outlook, Bartels suggests that the S&P 500 could reach 7000 points by year-end, surpassing the current market consensus. Recently, Goldman Sachs raised its year-end target to 6600 points, while other strategists like Barry Bannister from Stifel remain cautious, predicting a potential decline to 5500 points in the next six months.
Bartels emphasizes the role of AI, robotics, and crypto technologies in driving market growth, despite tariff fluctuations. She notes that 78% of U.S. companies exceeded earnings expectations in the first quarter, although uncertainties remain due to tariff impacts on the second-quarter outlook. However, Bartels believes low expectations could lead to another positive earnings surprise, with potential decreases in tariff rates and cooling inflation helping to lower interest rates.
