I say the S&P will be back to 1100 by Q1 next year for the following reasons: (no particular order).
1. Stimulus will be kicking in earnest later this year. 2. Domestic demand from emerging market. (this is huge - China +India will be twice the size of the US by 2020). 3. Inflation will start to take hold. 4. Business conditions continue to improve www.philadelphiafed.or.../ 5. Forward P/E's will come in greater focus and comps will start looking good. 6. Exports will start to boom (mainly to emerging markets) 7. Replacement demand from durable goods / auto's will kick in earnest, 8. Housing will stop falling.
I could go on. While we are not going to go to S&P 1500 anytime soon I refuse to fall into the trap of pessimism.
Why the Dow Is Headed to 6000 [View article]
1. Stimulus will be kicking in earnest later this year.
2. Domestic demand from emerging market. (this is huge - China +India will be twice the size of the US by 2020).
3. Inflation will start to take hold.
4. Business conditions continue to improve www.philadelphiafed.or.../
5. Forward P/E's will come in greater focus and comps will start looking good.
6. Exports will start to boom (mainly to emerging markets)
7. Replacement demand from durable goods / auto's will kick in earnest,
8. Housing will stop falling.
I could go on. While we are not going to go to S&P 1500 anytime soon I refuse to fall into the trap of pessimism.
Cheers.