Markets have continued to rise this year, with the S&P 500 up nearly 22% year-to-date and the Nasdaq up about 21%. In global stocks, the MSCI World Index rose about 16%. Many on Wall Street expect this trend to continue. Goldman Sachs, Morgan Stanley and others expect the S&P 500 to end the year around 6,000, up from around 5,730 on Tuesday. Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, said that while the stock market is facing various concerns, “liquidity is key, and now that the Fed has begun to cut interest rates, there is sufficient liquidity, which means the market can Keep grinding higher. “Historically, October is a seasonally volatile and hair-raising month for the market, which could bring some clarity,” she wrote in an Oct. 2 note. The stock market is turbulent, but the overall trend is clear: stocks are rising and yields are falling. At the same time, recent data suggests that the Federal Reserve may be on the verge of achieving a much-discussed soft landing for the economy. However, Wells Fargo said on September 30. The report warned: “The Fed’s more aggressive moves in its easing cycle have also led to financial markets facing greater volatility by encouraging a shift to risk assets and leverage, leaving an early growth recovery vulnerable to rising inflation and more High Interest Rates. As markets have moved higher, CNBC Pro has screened for global stocks that are outperforming the MSCI World Index but still look cheap based on their forward P/E ratios. We use the following criteria: Forward P/E ratio over the past five years. The forward price-to-earnings discount is 10% or more. The year-to-date return is over 16%, beating the MSCI World Index and at least half of the analysts covering the stock have a buy rating on the stock of at least 15%. There’s room for upside. These stocks are on the rise.
