Wall Street's Analysts Aren't Budging Ahead Of The Fiscal Cliff

Wall Street’s strategists and analysts are surprisingly sanguine as the fiscal cliff nears and threatens to slam GDP.

According to FactSet’s review of 10,988 ratings on S&P 500 companies, 50.0% were rated Buy, 45.3% were rated Hold, and 4.7% were rated Sell at the end of November.

This compares October when 49.5% were rated Buy, 45.7% were rated Hold, and 4.8% were rated Sell.

Based on those analysts’ price targets, the S&P 500 is worth around 1,602, which is 200 points higher than where it’s trading today.

A closer look at the numbers reveals some fiscal cliff worries.

“It is interesting to note that the industry that recorded the largest increase in the number of Sell ratings over the past two months is the Aerospace & defence industry, which is an industry that will be directly impacted by fiscal policy negotiations taking place in Washington,” writes FactSet’s John Butters.

But overall, analysts aren’t too worried.

Here’s a chart from FactSet:

analyst ratings

Photo: FactSet

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