Tags: Morgan Stanley | stocks | 20% | growth

Morgan Stanley's Parker: Stocks Could Rise Another 20 Percent This Year

By    |   Wednesday, 30 April 2014 11:14 AM

Adam Parker, Morgan Stanley's chief U.S. equity strategist, has an official year-end target of 2,014 for the S&P 500, but if all the cards fall right, the index could soar another 20 percent from current levels, he says.

That would send the S&P 500 to approximately 2,250. The index has gained 1.6 percent so far this year.

"I think the upside could be 20 percent from here, if we do get people more optimistic that growth's going to improve," Parker told CNBC.

Editor's Note:
Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

While Parker proclaimed that "the U.S. economy is improving," the Commerce Department reported Wednesday that GDP grew only 0.1 percent in the first quarter. Economists surveyed by Bloomberg expected the economy to grow 1.2 percent in the first quarter, down from 2.6 percent in the fourth quarter.

As for Parker's forecast of 2,014 for the S&P 500, "that's only 7 percent upside, and we don't have a lot of multiple expansion in there," he said.

"To me, it's a function of two things. One, the Fed's going to be more accommodative. We know that. And two, earnings growth and the economy are going to improve."

Meanwhile, strong first-quarter earnings reports continue to buoy the stock market.

"It is all about earnings. That is the guiding light for the market," Karyn Cavanaugh, market strategist with ING U.S. Investment Management, told The Wall Street Journal. "Despite everything we've been worried about this year, companies are getting it done."

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

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InvestingAnalysis
Adam Parker, Morgan Stanley's chief U.S. equity strategist, has an official year-end target of 2,014 for the S&P 500, but if all the cards fall right, the index could soar another 20 percent from current levels, he says.
Morgan Stanley, stocks, 20%, growth
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2014-14-30
Wednesday, 30 April 2014 11:14 AM
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