“Historically, strong returns tend to be followed by strong returns in the subsequent year,” Jonathan Golub, the bank’s chief U.S. equity strategist, said in a note Tuesday.
Equities had a banner year in 2017, with the S&P 500 rising 19.4 percent. Stocks got a boost last year from strong growth in corporate earnings, solid economic data and as expectations of lower corporate taxes. Last month, President Donald Trump signed a bill that slashed the corporate tax rate in the U.S. to 21 percent from 35 percent.
Credit Suisse was already bullish on U.S. stocks for 2018. Golub has a 3,000 target on the S&P 500 for this year. His target — along with his $155 earnings-per-share estimate — reflect “better corporate results (primarily in TECH+, Energy and Materials), a pickup in GDP forecasts for the upcoming year, and recent tax changes,” Golub said.