he bull market in stocks will continue the rest of the year despite the outsized gains already in the first quarter as more equity “disbelievers” are converted, the economy improves and more companies follow Apple’s lead in paying a dividend, well-known Wall Street strategist Byron Wien says.
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“I actually thought the S&P 500 [.SPX 1413.38 
-5.66 (-0.4%) 
] could reach 1500 based on the generally achieved (but not last year) multiple of 15 times and operating earnings of $100,” wrote Blackstone’s Wien in a strategy note to clients Tuesday, which reviewed his classic “Ten Surprises” outlook for the year. “Estimates have been trimmed somewhat, but, at this point, I still think 1500 is likely.”
“Over the past three months the pessimistic mood has changed to optimism,” continues Wien, formerly the long-time chief investment strategist at Morgan Stanley. “Ordinarily, optimistic sentiment readings presage a market correction, but there are so many investors looking for an opportunity to increase their exposure that even a minor downdraft gets cut short by a flood of buyers. This could continue for a while.”
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So far this year, the S&P 500 is up 12 percent to above 1400, Wien’s original 2012 forecast for the U.S. benchmark. Federal Reserve officials made note Tuesday of the strengthening economy in minutes releasedfrom the central bank’s March meeting. Read more
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