Tobias Levkovich Sees a Roadmap for S&P 500 to 1,615
Chief U.S. equity strategist at Citigroup Tobias Levkovich provided a bullish outlook for the stock market during an interview this week on CNBC. He sees the S&P 500 hitting 1,615 by the end of 2013.
Levkovich said they look at a lot of things when making their forecast including earnings growth and equity risk premiums, which are currently high.
Levkovich said fears including the fiscal cliff will force Washington to deal with some of the issues. It isn’t necessary to fix all the problems to allow equity risk premiums to come down, he added.
Levkovich expects five percent earnings growth next year and the market to increase 12-13 percent.
Levkovich downplayed the influence of Europe and China based revenue on S&P 500 company earnings.
The interview continued with Levkovich further discussing factors influencing earnings expectations and the importance of the Federal Reserve Board’s lending standard survey.
Back in 2008, Levkovich was very bullish on the market before its historic collapse (link).