2005: Gray, With Mild Returns
With 2005 fast approaching, Wall Street analysts are once again gazing into their crystal balls. What they see is a dull but mildly positive year for stocks.
Although strategists are calling for higher interest rates and a weaker pace of earnings growth next year, they believe stocks will inch up as the economy continues to grow at a respectable pace.
The median forecast among the major brokerages is for a 4% increase in the S&P 500, although estimates range from a decline of 4.6% to a gain of 10%.
One of last year's most accurate prognosticators, Tom McManus of Banc of America, is actually among the more bearish pundits this year, saying the market could remain flat or fall slightly over the next 12 months."We continue to believe that stocks remain a riskier bet in 2005 than in the recent past," he said. "While both earnings and
Can Wall Street strategists make it two solid years in a row?
|Brokerage||Strategist||S&P 2004 Target||S&P 2005 Target|
|Goldman||Abby Joseph Cohen||1250||1325|
|Smith Barney||Tobias Levkovich||1025||1300|
|J.P. Morgan||Abhijit Chakrabortti||1120||1275|
|Merrill Lynch||Richard Bernstein||890||1250|
|Morgan Stanley||Henry McVey||1200||1250|
|Bear Stearns||Francois Trahan||1100||1200|
|Banc of America||Tom McManus||1160||1200|
|*Ed Keon replaced Ed Yardeni, who had a 2004 target of 1260.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV