As all three major averages remain in negative territory for the week and on track for their fourth weekly decline in the past five weeks, some of Wall Street's top strategists gathered on Thursday to tell CNBC's "Power Lunch" where they stand on stocks.
Barbara Reinhard, chief investment strategist at Credit Suisse
2013 S&P 500 Price Target: 1,730
Thoughts on stocks: To Reinhard, there are three things that could drive stocks higher in 2013, including corporate earnings revisions, investor positioning and improved economic data in the second half of the year.
Jim McDonald, chief investment strategist at Northern Trust
2013 S&P 500 Price Target: 1,550 to 1,800
Thoughts on stocks: Some investors are worried the Federal Reserve will taper its monetary policy too soon, but McDonald doesn't think that will be the case. To stimulate the economy, the Fed has engaged in a bond-buying program that's paid for by printing money, which devalues the dollar and could lead to inflation. As it turns out, though, inflation has actually continued to fall. That, coupled with the fact that the economy is unlikely to grow much by year-end, means the Fed will be slow to taper its policy and investors will reposition themselves in equities. The bottom line, though, is that stocks are very volatile and will likely remain that way, which is why McDonald has a huge range for his S&P price target.
Thomas Lee, chief U.S. equity strategist at JPMorgan Chase
2013 S&P 500 Price Target: 1,715
Thoughts on stocks: Fears over the end to the Fed's policies are overblown, Lee said.
David Bianco, U.S. equity strategist at Deutsche Bank
2013 S&P 500 Price Target: 1,625
Thoughts on stocks: The recent selloff can simply be chalked up to investors adjusting to the idea that the Fed might soon end its monetary policy, Bianco said. Soon enough, fears will subside and positions will be adjusted, allowing for stocks to push higher long term.
Gary Thayer, chief macro strategist at Wells Fargo Advisors
2013 S&P 500 Price Target: 1,650-1,700
Thoughts on stocks: The Fed's policy provided the market with liquidity, so the idea that the program might end scares investors, Thayer said. People are worried about the economy, but they're also worried about how an end to QE will affect the market, too.
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