The stock market in Australia in 2017 did not perform as well as it was expected after it recorded only 6% gain in total. This figure is pretty low and a little bit disappointing considering that global stock markets were enjoying massive advancement in the wake of the bullishness seen in Wall Street. Investors are hoping that ASX futures will stage a big rebound this year but they might be disappointed again as predictions are not optimistic.
With limited gains set last year, opinions from financial pundits portray a dual picture.
It is a really a big challenge for ASX futures to keep its bullish legs fresh in order to rack up more gains as bears may claw itself deep down in the heart of index. In fact, one cannot rule out the possibility that ASX futures may be heading into advancement that is at its outmost no more than decent.
The leading multinational investment bank, Morgan Stanley, is more pessimistic as it fears ASX futures will end up in the bearish territory with the Aussie equities tumbling by 3% towards 5,800 by the end of the year. Morgan Stanley takes into account the downward trend of the Australian dollar, the slow economic growth, and dull corporate earnings as the source of evil.
On the other hand, the top American multinational investment bank, Goldman Sachs, has adopted a more positive point of view. It expects that ASX futures will end the current year at 6,500, recording gains equivalent to 8%, at least 2% higher than the figures last year. What is more, the bank boosts its prediction to 13% rise if dividends are included.
Macquarie, another top investment banking company, joins Goldman Sachs on its positive prediction regarding the ASX futures. Although it does not provide specific numbers, the bank believes that the Australian stock market is on its way to greater heights in the next two years.Only time can tell whether the bear or the bull is waiting for ASX futures. Investors are advised to remain vigilant and closely monitor market trends before making any significant decision.