Equity Outlook  |  Q1 2020

Is the path paved to 5,000 on the S&P?

Putnam Investments

Is the path paved to 5,000 on the S&P?


Equity markets continued to rally and reach new highs in the closing months of 2019. This was despite many developments that could have sent investors fleeing from stocks. The year also saw its share of volatility, and many issues for investors remain unresolved. What's in store for equities in 2020? We consider a number of factors that could drive stocks higher.

We explore the prospect — and likely timing — of a 5,000 milestone for the S&P 500 Index. Members of our Sustainable Investing Team discuss businesses in the fashion industry that are innovating to address some environmentally unfriendly processes. And we take a look at whether corporate governance practices can continue to boost the performance of Japanese companies.

Are stocks too expensive? Valuations in line with average.