Strategist Sees Sideways Market Through 2023, S&P 500 Rally Pushed to 2024

Equity strategist Barry Bannister extended his S&P 500 target of 4,400 to April 2024, expecting stocks to trade sideways through end of 2023 due to higher rates weighing on earnings.

Bannister correctly predicted the stock market rally in 1H 2022 and turned neutral in summer 2023, discouraging bullishness before 3Q 2023.

He believes a new record high for S&P 500 by end of 2023 is very unlikely.

Bannister sees 10-year Treasury yield peaking around 5% in this cycle, but normalizing to 5-6% in mid-2020s, putting pressure on earnings.

He forecasts S&P 500 earnings per share doubling from 2019 to 2030, but tightening financial conditions halving price-earnings ratios.