First Trust's Brian Wesbury: Stocks Will Soar 20 Percent This Year

Wednesday, 11 Jan 2012 07:45 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Most strategists are moderately bullish on the U.S. stock market for this year. But you can wipe off the “moderately” for Brian Wesbury, chief economist of First Trust Advisors.

“I’m looking for 3 percent growth in GDP – it could be even stronger than that – and 20 percent growth in stock prices” for 2012, Wesbury tells Yahoo.

And why is he so optimistic? “Mainly because the economy is going to be stronger than people think, earnings are at an all-time high, and they will grow again in 2012,” Wesbury says.
________________________________________________________

Inside the World’s Greatest Retirement Lie

Study reveals disturbing truth: Millions have been victimized by the very people they elected. Learn the Truth, See the Details. 

_________________________________________________________


He sees two factors driving profits higher. One is the increase in productivity provided by the growth of cloud computing and mobile devices, such as smart phones and tablet computers.

“It’s the equivalent of the technology boom we saw in the early 1990s with personal computers and windows software,” Wesbury says.

“Now we’re yanking computers off our desk and putting them in our palms. That productivity drives profit faster than GDP growth.”

The Federal Reserve’s accommodative monetary policy, while causing inflation in the long term, also will boost profits this year, Wesbury says.

At the other end of the spectrum on stocks sits Adam Parker, chief equity strategist at Morgan Stanley. He thinks the Standard & Poor’s 500 Index will drop 7 percent this year.

Bulls like Wesbury are "too optimistic about earnings," Parker tells The Wall Street Journal.



© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved