Perhaps the S&P 500 Will Rise 12.53% in 2010

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At the start of 2009, 11 Wall Street strategists polled by Bloomberg came up with an average price target of 1,056 for the S&P 500 at the end of the year.  This translated into an average estimated gain of 16.9% in 2009.  Unfortunately, the strategists lowered their year-end price targets significantly as the market collapsed in the first quarter, and then they had to play catch up as the market charged higher after the March bottom.  The S&P 500 is currently trading just 3% above the 1,056 price target, so strategists did a pretty good job with their initial estimates.  They should have just stuck to their guns.

So far 8 strategists have released their 2010 S&P 500 price targets (from the weekly Bloomberg survey), and all of them are expecting a gain next year from current levels.  Oppenheimer has the highest price target at 1,300, while Credit Suisse has the lowest at 1,125.  The average price target is 1,226.25, which implies a gain of 12.53% from here.

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December 09, 2009 at 02:00 PM in Market Analysis | Permalink

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A 13% increase for 2010 still means a relative loss for the investors whose portfolios lost 40-50% in 2008 and 2009. On the other hand boutique investment firms reported profits in the past years and offered better services with more personalized attention toward clients' investment portfolios. Gradually, confidence in the capital markets is gradually restoring to its pre-2008 levels.

Posted by: Financial Asset Management by Michael Weiss | December 09, 2009 at 02:39 PM

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