Legendary Wall Street investor Byron Wien, senior managing director at Blackstone Group, issued his predictions of top surprises for 2009 at the beginning of the year. Ten months later, he discussed those predictions with CNBC.
S&P 500 Target:
S&P 500 rises to 1,200. The mantra changes from “fortunes have been lost” to “fortunes can still be made.”
S&P 500 as of this writing: 1092.45.
Gold rises to $1,200 per ounce. In a time of uncertainty, investors want something they can count on as real.
“The S&P and gold "are both at about the same level right now,” Wien noted. Gold price as of this writing: $1,062 per ounce.
(For Wien's takes on home prices, U.S. consumers and global warfare, watch the full interview.)
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Price of oil returns to $80 a barrel. Production disappointments and rising Asian demand create an unfavorable supply/demand balance.
Nymex light, sweet US crude oil closed at $75.16/barrel Wednesday.
Low Treasury interest rates coupled with huge borrowing by the Treasury send dollar into a serious downward slide.
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10-Yr U.S. Treasury yield climbs to 4 percent. A weak dollar, rapid growth in money supply and record-setting deficits are behind the change.
“It got there in June, but they pulled back,” he said. “But it will get there again.”
No immediate information was available for Wien or his firm.