GO
Loading...

Oppenheimer has a wild 2014 market prediction

Wednesday, 20 Nov 2013 | 10:57 AM ET
Coincidence aside, this is a bullish forecast
Wednesday, 20 Nov 2013 | 11:30 AM ET
CNBC's Jeff Cox analyzes Oppenheimer's prediction that the S&P will end the year 2014 at 2,014. Aside from the coincidence, Jeff says it's the most bullish forecast he's seen so far.

This sure would be a coincidence.

Oppenheimer expects the stock market to continue its bullish behavior into next year, with the S&P 500 index finishing 2014 at the nice pinpoint figure of...2,014.

While the number might look on its face to be sort of random and convenient, the firm insisted in a note to clients that it actually represents a halfway point between two proprietary models it uses to determine market valuation:

The 2014 target reflects our expectation that the stock market will have opportunity to move higher over the course of next year, and turn in yet another double-digit increase—albeit around half the size of this year's rally to date. Our price target is set using the mid-point between our dividend discount model and a price/earnings model.

Uber bear Marc Faber gets a little bullish
European equities are poised to outperform the U.S. market, Marc Faber of the Bloom Gloom & Doom Report says.

(Read more: Short sellers see big chance—if they can survive)

Indeed, the P/E model puts the price target at 2,060 while the dividend-discount model prices the index at 1,967. With the actual average 2,013.5—well, why not round up?

Oppenheimer chief market strategist John Stoltzfus also noted that the firm has increased its 2013 price target from 1,730, which the index blew past in mid-October, to 1,812—less than 1 percent higher from current levels.

The projections are part of a clearly bullish market outlook:

We expect these valuation projections to be supported by improving fundamentals. We continue to believe that US economic growth has in effect been "primed" by the Federal Reserve's Quantitative Easing (QE) programs. Recent improvements in the tone of US economic data suggest to us that prospects are good for investors to see a continuation of the economic recovery that could drive earnings higher in the year ahead.

If that outlook fails, though, look out for S&P 2,015 in 2015.

(Read more: Huge change could be coming in 2014: Schwab CIO)

—By CNBC's Jeff Cox. Follow him on Twitter @JeffCoxCNBCcom.

  Price   Change %Change
S&P 500
---

Featured

NetNet TV

Wall Street

  • New York Attorney General Eric Schneiderman

    The New York attorney general's office has subpoenaed about a half-dozen high-frequency trading firms, a source told CNBC.

  • China's Weibo has priced its initial public offering at $17 per American Depository Share, at the bottom of its planned range.

  • Some high profile earnings beats by General Electric, Pepsico and Morgan Stanley helped counterbalance the hangover of Wednesday's big tech earnings misses.