Tags: Stocks | Gain | 2012 | rally

Strategists See Stocks Gaining Over 10 Percent in 2012

Thursday, 22 Dec 2011 07:41 AM

Stocks should gain 10.5 percent in 2012, a USA Today review of strategists' outlooks finds.

While the European crisis will continue to rattle stock markets, the underlying health of the U.S. economy remains firm.

"The relative stability of U.S. fundamentals and economic conditions will be an attractive alternative compared to other more volatile assets around the world," says Brian Belski, chief investment strategist at Oppenheimer, USA Today reports.
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Belski predicts the Standard & Poor's 500 broad index of stock prices to hit 1,400 next year, up 13 percent from where it is now.

Savita Subramanian, head of U.S. equity strategy at Bank of America Merrill Lynch, sees the S&P 500 rising 9 percent next year and hitting 1,350, adding the "avoidance of recession and continued earnings growth" from U.S. companies could drive gains, USA Today adds.

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(Associated Press photo)
Investors have been loading up on cash and stocks ahead of 2012.

A Reuters survey of 56 investment houses in the United States, Europe, and Japan showed a typical balanced portfolio held 6.6 percent of its assets in cash, its highest since December 2010, while exposure to stocks rose to 51.3 percent, the highest since July.

"Despite the more lackluster prospects for economic growth next year, we are positive on the longer-term prospects for equities, reflecting low valuations and the relatively strong financial positions of many companies," says Alec Letchfield, Chief Investment Officer, Wealth at HSBC Asset Management, according to Reuters.

"However, further volatility is likely and downside risks remain in the event of another escalation of the eurozone crisis."

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Stocks should gain 10.5 percent in 2012, a USA Today review of strategists' outlooks finds. While the European crisis will continue to rattle stock markets, the underlying health of the U.S. economy remains firm. The relative stability of U.S. fundamentals and economic...
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2011-41-22
Thursday, 22 Dec 2011 07:41 AM
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