The Australian newspaper has reported that analysts at investment bank Credit Suisse still expect the S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) to reach the 6000-point level during 2016.
The analysts' optimism reportedly based on the idea that February 2016 marked the low for markets as China bottomed out and central banks acted to support global growth.
Credit Suisse reportedly declared recent ASX price action a 'Gummy Rally', or one where beaten-down sectors like energy, materials, and the banks start to outperform the wider index after a rough trot.
The materials sector in particular has enjoyed support recently and will have to do more heavy lifting if the ASX is to reach 6000 points within the next nine months.
Iron ore miners like Rio Tinto Limited (ASX: RIO), BHP Billiton Limited (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are up 16%, 13% and 30% over the past month alone and more strength in the red metal's price will probably help lift the overall index higher.
Elsewhere, beaten-down oil majors like Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH) have also seen their share prices get a wriggle on recently as oil prices also trend higher. If the index level is to meet Credit Suisse's expectations in 2016 the oil majors will probably also need to enjoy a strong second half to the year.
The truth is that nobody knows for sure whether or not the S&P/ASX 200 will hit 6000 points in 2016, but what is almost certain is that it will hit that level sometime in the future, which means patient investors with balanced portfolios will be well rewarded.