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Pro Analysis

Despite investors' enthusiasm for Trump's policies, Wall Street's outlook remains muted

A pedestrian carries an umbrella as she passes by the New York Stock Exchange.
Brendan McDermid | Reuters
A pedestrian carries an umbrella as she passes by the New York Stock Exchange.

Despite investors' enthusiasm surrounding President-elect Donald Trump's pro-growth policies, Wall Street firms remain timid in their prognostications for 2017.

"While we've seen wildly positive sentiment in many of the investor and consumer surveys released recently, it appears that Wall Street strategists don't have high expectations for the stock market in the year ahead," Justin Walters, co-founder of Bespoke Investment Group, wrote in a note to clients this week.

The contradicting feelings about the stock market are most evident in the 2017 year-end price targets for the S&P 500 index, which shows most investment houses forecast subpar returns for the next 12 months.