Donald Trump will continue to soften his campaign rhetoric as he transitions into the presidency, setting up another 10 percent leg higher this year for the from current levels, Blackstone's Byron Wien predicted as his top surprise for 2017.
Trump will be a "more reasonable leader than people fear," implementing pro-growth policies that should boost the stock market, corporate earnings and the U.S. economy overall, Wien said Wednesday on CNBC's "Squawk Box."
The vice chairman of multi-asset investing at Blackstone put a 2017 target of 2,500 on the S&P, which closed on Tuesday at 2,257 following a nearly 1 percent rally on the first trading day of the new year.
However, Wien in his 2016 surprises, like many pundits, predicted Democrat Hillary Clinton would win the presidency, not against Trump but Republican Texas Sen. Ted Cruz, who was runner-up in the GOP primaries.
He also predicted a down market for last year, which also turned out to be wrong, because the surprising Trump victory fueled a postelection, late year rally, which saw the S&P gain 9.5 percent in 2016 and the Dow Jones industrial average surge nearly 13.5 percent.
Wien announced his "Ten Surprises for 2017" this week. It's an annual list he started in 1986, when he was chief U.S. investment strategist at Morgan Stanley. He defines a "surprise" as an event that the average investor would assign only a 1 in 3 chance of happening but which he believes has a greater than 50 percent likelihood.
Here's the top 10 list of Wien's surprises for 2017, as written in Tuesday's press release: