S&P Near 1500, Gold Above $1600: Byron Wien's 2011 Surprises
2011 is going to be a better year for the economy compared to current consensus numbers, said Byron Wien, vice chairman of Blackstone Advisory Partners.
“There’s a great deal of focus on the 10 percent of the population that’s unemployed, but it’s what the 90 percent does that really counts in the economy,” Wien told CNBC.
“And the 90 percent feel more secure about their jobs and more willing to spend.”
Wien expects the economy to grow 5 percent. The three key drivers will be consumers, trade and capital spending.
Wien’s Surprises for 2011 Include:
Real GDP rises close to 5 percent
- Unemployment drops below 9 percent
Yield on the 10-year approaches 5 percent
- Spreads with corporate fixed income securities narrow
S&P rises close to its old high of 1500; telecoms and utilities lag
- Individual investors return to equities
- M&A activity intensifies
Inflation remains benign, but gold rises above $1,600
- Hedge funds sell gold positions, some even short gold—but scramble back in when it keeps rising
China manages the value of the renminbi to keep growth below 10% and to prevent consumer prices from rising above 4 to 5 percent
- Precursor to adoption of a basket including the renminbi as alternative reserve currency
Scorecard—What He Said:
- Wien's Previous Appearance on CNBC (Dec. 9, 2010)
More Market Analysis & Opinion:
- S&P to Hit 2,854 on Sept. 4, 2013: Laszlo Birinyi
- How to Profit From the Jobs Rebound: Stock Pickers
- 6 High-Quality High-Yield Stock Picks: Strategists
CNBC Data Pages:
CNBC's Companies in the News:
Bank of America
- Bank of America to Roll Out Fees, New Accounts in 2011
- BP, Firms Made Risky Decisions Before Spill
- Chesapeake Plans to Trim Debt, Cut Growth Rate
No immediate information was available for Wien or his firm.