GO
Loading...

Year-End S&P 500 Price Targets from Wall Street Strategists

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.


Nick M. Do | E+ | Getty Images

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.


Watch "Power Lunch" Monday to Friday at 1 p.m. EDT!

Follow us on Twitter! @PowerLunch

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • Discussing when the Fed will raise rates, with Mark Olson, Treliant Risk Advisors chairman and former Federal Reserve Governor.

  • Reacting to comments by Federal Reserve chair Janet Yellen, with Diane Swonk, Mesirow Financial; Joe Lavorgna, Deutsche Bank; Jim Bianco, Bianco Research; and CNBC's Steve Liesman. Bianco says we are farther away from the first rate hike than before the meeting.

  • Fed chair Janet Yellen defends her comments on the Fed's forward guidance not being calendar based. Yellen says the FOMC does not want to be locked into something that the market sees as a firm commitment.