Tags: Parker | S&P 500 | 2014 | stocks

Morgan Stanley's Parker Sees S&P 500 Hitting 2,014 Next Year

Tuesday, 03 Dec 2013 08:11 AM

By Dan Weil

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The level of the Standard & Poor's 500 Index will match the year number — 2,014 — next year, predicts Adam Parker, chief U.S. equity strategist for Morgan Stanley.

Parker's forecast puts him at the top of the 10 Wall Street strategists who have offered projections, as tracked by Birinyi Associates, according to The Wall Street Journal.

The average estimate is for a 5.3 percent gain from Friday's close of 1,805. Parker's forecast represents an 11.5 percent increase from then.

Editor’s Note:
Retirees Slammed with 85% Pay Cut (New Video)

While some experts are worried that a tapering of quantitative easing by the Federal Reserve would hurt stocks, Parker isn't.

"Tapering is good," he writes in a report obtained by The Journal. "We know the consensus view is that tapering and rising rates will be bad for equity markets. We are not convinced that will be true this time."

Parker doesn't think tapering would hurt profits. "Why would tapering be associated with more fear about corporate earnings?" he asks. A tapering might actually provide a good buying opportunity, he notes.

As for the short-term outlook for stocks, some investors are concerned by the 2.9 percent decline in retail sales reported for Thanksgiving weekend.

"I would have expected Thanksgiving weekend sales to be stronger, given how well financial markets have done," Scott Clemons, chief investment strategist at Brown Brothers Harriman Wealth Management, told Bloomberg.

"We're skeptical that the price movement in stocks this year has been supported by fundamentals, so we're lightening up."

Editor’s Note: Retirees Slammed with 85% Pay Cut (New Video)

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