Tags: Wien | S&P | 500 | 1300

Blackstone’s Wien Sees S&P 500 Correction to 1,300

Wednesday, 09 Jan 2013 01:08 PM

By Dan Weil

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Don’t get too excited about the stock market’s rally to a five-year high last week, says Byron Wien, vice chairman of Blackstone Advisory Partners, as the Standard & Poor’s 500 Index could drop to 1,300, down 11 percent from 1,462 Wednesday.

"I have a bearish outlook. The market will have a swoon here,” Wien tells CNBC, adding that weak earnings will trigger the move.

“A profit margin squeeze and limited revenue growth cause 2013 earnings for the Standard & Poor's 500 to decline below $100, disappointing investors,” Wien writes in a list of his predictions for the year.

Editor's Note:
Billionaires Dump Stocks. Prepare for the Unthinkable.

“The S&P 500 trades below 1,300. Companies complain of limited pricing power in a slow, highly competitive world economic environment.”

To be sure, Wien doesn’t expect the downdraft to last too long, with the S&P 500 ending the year little changed. He likes large-cap multinational stocks.

Bob Doll, chief equity strategist at Nuveen Asset Management, doesn’t share Wien’s short-term bearishness. He thinks the S&P 500 will breach its record-high close of 1,553 set in October 2007.

"That's less than a 10 percent gain," he notes. “My guess is we'll meander our way through, that we'll grind higher to get there, despite all the walls of worry."

All it will take is less bad news, not a raft of good news, Doll says.

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

© 2014 Moneynews. All rights reserved.

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