Credit Suisse and UBS recently suggested the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) would hit 5,500 points by the end of 2016. Right now, it looks as though it could surpass that figure this week.

The ASX 200 has been on fire recently, charging higher in each of its last eight sessions. The main bourse closed at 5,458 points on Monday afternoon, marking a 3.1% lift since the beginning of the year and an 8.1% improvement since it bottomed out after Brexit.

According to The Australian Financial Review at the time, Credit Suisse and UBS suggested the relative “cheapness” of some Australian shares could carry the market higher by the end of the year.

The call went against the beliefs of many in the market who were still reeling from the uncertainty over Britain’s decision to leave the European Union, but noted that the prospect of further stimulus from the Reserve Bank of Australia could propel shares higher. Indeed, many economists expect the RBA to cut interest rates when they meet next month.

This is perhaps one of the reasons why shares of businesses such as Australia and New Zealand Banking Group (ASX: ANZ), Telstra Corporation Ltd (ASX: TLS) and Westpac Banking Corp (ASX: WBC) have rocketed higher in recent times.

Each of those businesses offer solid, fully franked dividend yields which have been highly sought after by investors in this low interest rate environment. Another reduction of the cash rate to 1.5% would likely exacerbate the market’s interest in those dividend yields, while the RBA could elect to move interest rates even lower than that mark over the coming 12 months or so.

It should be noted that although the brokers referred to the “cheapness” of some shares on the ASX, that does not mean that investors should just buy any stock. Given the economic climate right now, investors should be more selective with the shares they buy, paying consideration to factors such as valuation and vulnerability to a potential economic slowdown.

In my mind, the banks are still a risky play – especially considering the likelihood of further capital raisings in the future – while many retailers could also be a risky option. After all, if times do get tough, consumers could rein in their spending on discretionary items which would hurt a number of retailers, at least in the short-term.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.