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Leuthold: S&P 500 to Hit 1,350

By    |   Monday, 05 Oct 2009 11:31 AM

The Standard & Poor's 500 Index will hit 1,350 in 2010, says Steve Leuthold.

Leuthold's $4 billion Core Investment Fund was a big winner over the past five years, topping 95 percent of competing investment funds. So when Leuthold predicts, investors listen.

"There's pretty good momentum, and the market psychology is right," Leuthold told Bloomberg News.

"The market's turned up before the economy did. Now the economy is improving. It might be a little better than most think. It ain’t wonderful, but it's a lot better than it was."

The second half of 2010 looks a little iffy, according to Leuthold, and he's not expecting stocks to keep climbing after his predicted 77 percent run-up from its recent low.

"Valuations would be getting richer at that point," he said.

“We're not going to make a new high above 1,550 or anything like that. There's got to be more work done. And the U.S. is a lagging global economy now."

Some 30 percent of Leuthold's holdings are in foreign firms, anticipating higher growth rates in non-U.S. economies.

Leuthold was bearish last year when he ran the Grizzly Short Fund, which racked up a 74 percent return as stock prices fell.

Despite Leuthold's now optimistic outlook, the S&P 500 lost 2.6 percent on October 1.

Manufacturing data was disappointing, and unemployment numbers were higher than expected, suggesting that the hoped-for recovery was still sputtering.

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The Standard & Poor's 500 Index will hit 1,350 in 2010, says Steve Leuthold.Leuthold's $4 billion Core Investment Fund was a big winner over the past five years, topping 95 percent of competing investment funds.So when Leuthold predicts, investors listen."There's pretty...
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2009-31-05
Monday, 05 Oct 2009 11:31 AM
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