Tags: Wilkinson | stocks | surge | fed

Miller Tabak’s Wilkinson: Fed ‘Will Come to Rescue,’ US Stocks to Soar

Tuesday, 19 Jun 2012 07:04 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Total return for U.S. stocks should surge 10 percent through year-end, propelled by additional easing from the Federal Reserve, says Andrew Wilkinson, chief economic strategist at Miller Tabak brokerage firm.

“I’m optimistic on stocks,” he tells Yahoo. “What’s gotten in the way over the last quarter has been the downturn of the U.S. economy inspired by fallout from the eurozone.”

U.S. GDP growth slumped to 1.9 percent in the first quarter from 3 percent in last year’s fourth quarter.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

But that weakness should prompt the Fed to engage in another round of quantitative easing, boosting stocks, Wilkinson says.

“What I don't see happening is an all-out collapse in global markets. I do believe that the Fed will come to the rescue and get some of the traction back in that it had generated over the last couple years.”

Wilkinson predicts the Standard & Poor’s 500 Index will reach 1,450 by Dec. 31. That represents an 8 percent increase from current levels, and a 10 percent total return including dividends.

Others agree with Wilkinson that the Fed will likely add to its monetary accommodation.

“What we are hearing from Fed Vice Chairman [Janet] Yellen and New York Fed President [William] Dudley, and the minutes of the last meeting, is that there are more risks on the downside,” Donald Kohn, a former Fed vice chairman who is now at the Brookings Institution, tells Bloomberg.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans







© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved