The top equity strategist at Barclays is optimistic about the S&P 500, suggesting that long-term investors have a prime opportunity to capitalize on potential growth. Venu Krishna, managing director and head of US equity strategy at Barclays, shared in a recent CNBC interview that the SPX is currently undervalued with a price-to-earnings ratio below 20x, making it an attractive entry point for investors.
Despite concerns about the conflict in the Middle East, Krishna believes that it will not significantly impact the market in the long term. He stated, “Our base case is that there will be a resolution to the crisis in the Middle East, as history has shown that geopolitical risks tend to normalize relatively quickly.”
Looking ahead, Krishna predicts that the S&P 500 could reach 7,650 by the end of 2026, buoyed by the resilience of the US economy in the face of challenges such as higher oil prices. He emphasized that the US, as a net energy exporter, is better positioned to weather the storm compared to other regions.
However, if the situation in the Middle East worsens, Barclays envisions the S&P 500 dropping to 5,900. Currently, the S&P 500 is at 6,575, indicating a potential 16% upside to Krishna’s year-end target.
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