If you are interested in obtaining stock trading education, one piece of information that could potentially provide benefits is the various bullish equity predictions recently made by market experts.
Many Wall Street strategists predicted that the S&P 500 Index will rise in 2013, often citing general improvement in the economy and corporations using their accumulated cash for mergers and acquisitions, Bloomberg reports. Another factor that came up was the efforts made by the Federal Reserve and the European Central Bank (ECB) to use monetary easing to stimulate the economy.
The S&P 500, which is used as a benchmark by many market participants, surged 13.4 percent in 2012, and has gained more than 100 percent of its value since falling to its recent low in March 2009.
Morgan Stanley analyst prediction
Adam Parker, who is the chief U.S. equity strategist at Morgan Stanley, predicted that the S&P 500 will finish 2013 at 1,600. "We see improving fundamentals in the second half of the year and into next year," Parker wrote in a recent note, according to the news source. "A number of things have been responsible for the recent multiple expansion, but perhaps a major contributor was quantitative easing, which encompasses Fed and ECB policy."
USA Today reports that the bullish forecast of Parker is worthy of mention since he took a bearish stance on the stock markets in 2012, and has frequently been regarded as having one of the most bearish positions in equities.
One reason he cites for his prediction that the S&P 500 will rise in 2013 is that there are fewer factors that could cause U.S. stocks to drop substantially in value, according to the news source. He said that one major shortfall that could potentially push equities lower would be a reported earnings that fall below predictions. He said that the Federal Reserve could potentially push these equities lower if it decides to end its current bond-buying program earlier than expected.
Goldman Sachs estimate
Parker was not the only one who provided a bullish estimate, as Goldman Sachs chief U.S. equity strategist David Kostin recently predicted that the S&P 500 will finish 2013 at 1,625, compared to its previous prediction of 1,575, Business Insider reports.
He noted the strong data surrounding the retail sales, job market and manufacturing in the U.S., and said that this information is helping to paint a picture of an economy that is steadily improving and also chief executives who have more faith in the business climate, according to the news source.
The strategist upgraded his prediction for the corporate earnings of companies contained in the S&P 500 to $108 per share, which was $1 higher than in 2012, Bloomberg reports. He added that Goldman Sachs is optimistic about the future growth of the U.S. economy, predicting that the nation's gross domestic product will grow at a rate of 3 percent in the first quarter and 2 percent in the second.
Another market expert who upgraded his forecast for the performance of the S&P 500 Index was Deutsche Bank chief U.S. equity strategist David Bianco, who increased his estimate to 1,625 from its previous level of 1,600, according to USA Today. He said that the recent outcry in Cyprus regarding a proposal to levy bank deposits is "an isolated event."
Andrew Garthwaite of Credit Suisse also revised his prediction, increasing his forecast for the S&P 500 to 1,640 from 1,550, Bloomberg reports. He attributed this more bullish forecast to investors putting more money into equities, and central banks doing more to stimulate the economy.
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