Tags: JPMorgan | Stocks | Rally

JPMorgan: Stocks Can Rally 20 Percent by Year’s End

By    |   Tuesday, 18 Oct 2011 08:09 AM

Volatility in the markets has many investors treading carefully because they don't know what to expect. Tom Lee, chief equity strategist at JP Morgan, told Yahoo's Breakout that he expects a 20 percent year-end rally.

According to Breakout, from current levels — that would take the S&P 500 to about 1,440.

Though not suggesting anything nearly as drastic as Lee's double digit rally, the AP also recently published an article suggesting investors may be in for a turnaround.

2011 was shaping up to be a washout for the stock market just two weeks ago. Now, it's within shouting distance of its biggest comeback in nearly three decades, that article says.

The biggest reason, says the AP, is that some think stocks may be the best value out there.

According to Breakout, Lee assembled a 3-part strategy that has generated a list of 21 stock picks that he thinks are poised to ride this rocket to new heights.

REITs and hotels dominate the list, accounting for 11 spots or 52 percent of the total list, says Breakout.

Also on this rocket list are four stocks described as specialized finance companies. They are Moody's, American Express, CME Group and Interncontinental Exchange.

If the S&P 500 finishes the year with a gain, it will be the biggest turnaround since 1984, says AP. That was also the last time that the S&P 500 fell more than 10 percent during a calendar year and finished the year in the black. The index finished that year up 1.4 percent.

Sam Stovall, chief equity analyst at Standard & Poor's, told AP even if there is a gain, history says that you're not going to end up with anything to be too excited about.

There are less than three months between now and the start of 2012, but according to Lee's internview with Breakout, a "20-plus-percent" rally is doable.

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Volatility in the markets has many investors treading carefully because they don't know what to expect. Tom Lee, chief equity strategist at JP Morgan, told Yahoo's Breakout that he expects a 20 percent year-end rally. According to Breakout, from current levels that would...
JPMorgan,Stocks,Rally
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2011-09-18
Tuesday, 18 Oct 2011 08:09 AM
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