Last year I asked for 2012 stock market predictions. At the time, the market (as measure by the S&P 500) had been almost perfectly flat during during the preceding year. In fact, it opened 2011 at 1257.64 and, despite many gyrations, closing at 1257.60 on the last day of the year.
Based on the poll results, ca. 25% of respondents predicted the market would be down, about 8% predicted a flat market, and the remainder (ca. two-thirds) predicted an increase. Well, the results are now in.
The market (again, as measured by the S&P 500) went from 1257.60 to 1426.19 during 2012 — a 13.4% increase. While the majority got the overall answer right (i.e., it went up) only 11% picked the right bin (10-15% increase).
With that as a backdrop, I thought it would be fun to run a similar poll for 2013. So here it is…
{democracy:172}
If you’d like to make a guess as to the specific closing price at the end of 2013, please do so in the comments section (but please also select a poll choice). You won’t win anything but bragging rights if you get it right, but hey…
Bragging is kinda fun.
Note: E-mail and RSS subscribers may need to click through for the poll to work.
Down 5-10% from current S&P 500 levels— The Overall Market Direction is a pawn subject to the political and ideological differences, both intra party amd inter party. No compromise, depending on the duration of the stalemate, means economic and political crisis – both domestically and internationally. Of course I addressing the debt ceiling pending 10/17/13. This is brinkmanship – who blinks first! No reason to play this game. Holding cash for the past three weeks and letting others speculate.
Good luck to all
I think the 2% payroll tax holiday expiration will have a larger negative impact than most people expect. QE will continue to be a non-factor, but will spook the markets when it ends. Raising taxes on the wealthy doesn’t help either, but since it hits such a small percentage of GDP, it will not be much of a factor. All that being said, I predict the S&P closes at 1475.
Not only are we overvalued, it’s the first year after a presidential election- typically the worst year of all. I think we rally a little bit early but have a legitimate correction later in the year, ultimately giving up most of the 2012 gains. 1350 at year end.
The P/E ratio is too high for most stocks, so I expect a downturn.
I think it will go up by a 5-10%. The eurozone news are not so worrying as they used to be and investors seem more confident (at least this is the impression that I have!).
1310
Pluck-from-air? Let’s go with 1583 on 12/31/13. $85B/month has to end up somewhere!
S&P on 12/31/2013 = 1515.86