An S&P 500 index of 5,000 points is one of Emirati broker CFI's key forecasts for 2024, alongside a return to 2% inflation in the US and a further bout of dollar weakness.

While acknowledging that the US stock market will face a high degree of uncertainty next year with the presidential election, the Dubai-based broker says it expects Wall Street to set "new records".

CFI justifies its optimism with price declines, a healthy economy and an expected 13.6% rebound in S&P 500 earnings in 2024.

Its forecasts also include a fall in the greenback and a recovery in the price of US light crude (WTI), which it expects to return to the $88 a barrel mark.

With the American election, CFI predicts a resurgence of geopolitical tensions between the USA and China, particularly around technology-related issues.

'Despite the Chinese President's historic visit to the USA this year, no progress has been made towards resolving this climate of hostility', the broker points out.

CFI, which also forecasts a return of the ounce of gold to $1800 and a continuation of the electrification movement in the automotive sector, reminds us that 'when (it) predicts something, (it) wants its projections to be as sensible and close to reality as possible'.

Its target of an S&P 500 at 5000 points thus corresponds to an increase of around 4.5% next year.

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