RBC Capital Markets Head of US Equity Strategy Lori Calvasina joined Market Domination to explain her 2025 S&P 500 (^GSPC) price target of 6,600.

"We take a quantitative approach to the target," Calvasina explained, detailing how RBC's models incorporate multiple factors, including valuation, economic sentiment, assets, earnings yield gaps, and political analysis. "So some of the things that we've baked into the base case are some of the typical performance when Republicans control everything," she noted, referencing historical gains of approximately 11%.

"I could go on and on about all the different models, but basically, we run through the math on each of them, and we take the median, and that gets us to around 6,600 for next year. And I will say this is the current path we see equities on," she told Yahoo Finance. However, Calvasina cautioned that RBC anticipates a 5-10% market correction along the way.

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This post was written by Angel Smith