Chart of the Day - Monday, November 27, 2023

Today’s Chart of the Day was shared by Renaissance Macro Research (@RenMacLLC). As we approach the new year, it's a good time to remember how silly year-end price targets are. The analysts who make these predictions are smart folks, but they don't have a crystal ball. Most of them update their views as the data unfolds throughout the year, as any objective analyst should. Heading into 2023, analysts' average year-end price target was 4,009, with some calling for as low as 3,250. The S&P 500 currently trades more than 10% above that average, at 4,550. Renaissance points out that the S&P 500 tends to do well when analysts are caught off guard like this. They were wrong in 2022, they were wrong in 2023, and they'll likely be wrong again in 2024. As they say, price creates the narrative, not vice versa.