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Byron Wien: US Stocks Face Fall-Off, May Test Feb. Lows


By    |   Wednesday, 27 June 2018 10:36 AM

Investment guru Bryon Wien predicts a strong year-end rally, but warns the stock market could "go back and test the February lows" in the meantime.

Wien, vice chairman of Blackstone Private Wealth Solutions, said Monday’s market plunge didn’t jolt his confidence for a bullish 2018.

“I always thought we'd go back and test the February lows. I don’t know that we’ll get all the way down there,” Wien told CNBC.

Wall Street bottomed out for 2018 intraday on Feb. 9, in a sharp sell-off that fell in and out of 10 percent correction territory, CNBC reported.

After the midterm elections in November, Wien said, “The upside of the market is that we can get to 3,000 [on the S&P 500].” Based Monday’s close of 2,717, a move to 3,000 would represent a rise of 10.4 percent and a total increase of more than 12 percent for all of 2018, CNBC explained.

“I think that’s realistic because earnings are coming through very powerfully,” Wien said in Tuesday’s CNBC interview. “Second quarter, I think, is going to show year-over-year earnings improvement of 25 percent. And I think we’re going to be plus-20 [percent] for the remaining two quarters.”

Tuesday on Wall Street, U.S. stocks rebounded on Tuesday on gains in the energy, technology and consumer discretionary sectors after a sharp sell-off a day earlier on spiraling global trade tensions.

However, intensifying trade tensions over the last week have raised the risks to the U.S. economy, Atlanta Federal Reserve bank president Raphael Bostic said on Tuesday, adding that he may rule out a fourth rate increase for the year if the developing trade war gets worse, Reuters reported.

“The more it progresses in this more contentious way, the more it leads me to feel the risks are on the downside for the broader economy,” Bostic said in remarks at the Birmingham Civil Rights Institute. “If this progresses the way it has been the last couple of days there is some likelihood I will be moving away from four as a real possibility.”

The Fed has raised interest rates twice so far this year and its latest forecasts show policymakers expect to hike rates two more times in 2018.

(Newsmax wire services contributed to this report).

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Blackstone's Bryon Wien predicts a strong year-end rally, but warns the stock market could "go back and test the February lows" in the meantime.
byron wien, stocks, market, investors
Wednesday, 27 June 2018 10:36 AM
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