Tags: Wien | Stocks | Bull | Run

Byron Wien: Stocks’ Bull Run Will Continue Through 2012

Thursday, 05 April 2012 07:26 AM

Wall Street strategist Byron Wien says the bull market in stocks will run through the rest of the year as the economy improves and more companies follow Apple’s lead in paying a dividend, CNBC reports.

“I actually thought the S&P 500 could reach 1,500 based on the generally achieved (but not last year) multiple of 15 times and operating earnings of $100,” Wien wrote in a note to clients.

“Estimates have been trimmed somewhat, but, at this point, I still think 1,500 is likely.”

Editor's Note: Did Obama Betray America? Video Reveals Truth

“Over the past three months the pessimistic mood has changed to optimism,” says Wien. “Ordinarily, optimistic sentiment readings presage a market correction, but there are so many investors looking for an opportunity to increase their exposure that even a minor downdraft gets cut short by a flood of buyers," he said.

"This could continue for a while.”

“Over the past few years the work of the Economic Cycle Research Institute has gained some respect,” Wien says. “Its index peaked in April 2010 and April 2011, warning of slower economic activity to follow. The S&P 500 subsequently declined 15 percent in both of those years.”

“The index is currently rising and there are enough positive economic factors influencing it to believe that it won’t peak soon.”

But not all experts are so optimisitc.

Economist Gary Shilling says we're still headed for a recession this year despite the market's recent bullish behavior, the Globe and Mail reports.

"Despite the recent euphoria of investors over U.S. stocks, we believe the economy is likely to weaken as the year progresses, led by renewed consumer retrenchment," Shilling wrote in a note to investors.

Shilling points to a number of unusual indicators that suggest the U.S. economy may be weaker than most people believe. For example, electricity generation is falling rapidly, which this may be because this winter was unusually mild but could also indicate declining economic activity.

Editor's Note: Did Obama Betray America? Video Reveals Truth

© 2018 Newsmax Finance. All rights reserved.

1Like our page
Thursday, 05 April 2012 07:26 AM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved