Market Strategists Continue to Predict Strong Gains in 2008

Includes: IVV, SPY
by: Bespoke Investment Group

Below we highlight the most recent strategist forecasts for the price of the S&P 500 at the end of 2008. AG Edwards and Morgan Stanley were added since our last post on '08 projections.

Based on the current price of the S&P 500, Wall Street strategists are looking for a gain of 13% by the end of next year. Bear Stearns and HSBC are the most bullish, with price targets of 1,700, followed by Strategas (1,680) and Goldman and Citi (1,675). Morgan Stanley is the least bullish with a price target of 1,525, but this is still 5.47% above the current level of the S&P 500.

Over the past few weeks, we've seen numerous downgrades of individual stocks across the board, but more heavily concentrated in the Financial sector. It is somewhat curious that amidst the plethora of downgrades, all strategists are looking for gains in the S&P 500 in 2008, even with the Financial sector making up nearly 18% of the index.