As far as market metrics are concerned, there are a number of ways investors benchmark their returns. Among the most important benchmarks continues to be the SPDR S&P 500 ETF (NYSEARCA:SPY), an exchange-traded fund that tracks the S&P 500 Index. On a year-to-date basis, the SPY ETF is down approximately 20%, signaling just how impactful this macro environment has been this year.
Much of this year’s downside can be tied to higher interest rates. As inflation has surged, the Federal Reserve and other central banks have resorted to increasing benchmark rates to cool the economy. Doing so has raised everything from mortgage rates to the cost of capital. Accordingly, owners of nearly any asset have seen valuations decline alongside higher discount rates.
This is to be expected in an overheated economy. However, what happens next is what most investors are concerned with. Whether we’ll see a recession result from these hikes, a so-called “soft landing” or nothing at all is being debated right now. As it turns out, Wall Street appears to be mixed in terms of where they see the S&P headed from here.
Let’s dive into five SPY ETF predictions for 2023. These price predictions span a rather wide range, making for interesting discussion.
Where Is the SPY ETF Headed From Here?
- Analysts at Morgan Stanley (NYSE:MS) predict the S&P 500 will hit 3,900 in June 2023. This implies a price target of approximately $389 on the SPY ETF.
- Citi (NYSE:C) agrees with this target, with a price target of 3,900 on the S&P put out earlier this month. That’s $389 on the SPY ETF.
- A bit more bullish is Goldman Sachs (NYSE:GS), with their analysts pricing in a 4,000 S&P price target, or $399 for the SPY ETF.
- Credit Suisse (NYSE:CS) chimes in with a 4,050 price target, implying a $404 price target for they SPY ETF.
- Finally, UBS (NYSE:UBS) provides the highest price target of the bunch, with a 4,200 target on the S&P. This implies a $419 price target for the SPY.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.