We present below the great and good (or Wolves?) of Wall St and their 2014 predictions for the S&P500. Warning sign 1000,001 – when the “anal”yst consensus is one way the opposite invariably happens and here at SBM we can’t quite see 2500 on the S&P500. Our money is on an end year close of 1350.
CITIGROUP
Year-end target: 1,900.
Reasoning: Modest improvement in the economy and better company earnings. Enticed by higher returns, investors will move some cash from bonds back into stocks.
BANK OF AMERICA MERRILL LYNCH
Year-end target: 2,000.
Reasoning: With the Federal Reserve likely to end its bond-buying program, bonds face a tough year. In stocks, the focus will be large multinational companies that can benefit from an improving global economy.
GOLDMAN SACHS
Year-end target: 1900.
Reasoning: The rally of 2013 cannot continue into 2014. Stocks are no longer cheap. Investors are paying more than $16 for every $1 of earnings, versus about $14 at the beginning of 2012. Stocks will keep rising, but more modestly, Goldman analysts say.
BARCLAYS CAPITAL
Year-end target: 1,900.
Reasoning: The Fed pulling out of its stimulus program will lessen the support for U.S. stocks over the next year. Investors should focus on corporate earnings, as well as the modestly improving economy.
WELLS FARGO SECURITIES
Year-end target: 1850-1900.
Reasoning: The stock market will trend higher next year, but the returns are unlikely to repeat the gains of 2013. Another round of budget battles between the White House and Congress as well as a new Fed chairwoman will likely impact the market’s growth.