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Market Extra: Forget the tariff tantrum—S&P 500 is headed 10% higher in 2018, says Blackstone’s Wien

Blackstone’s Byron Wien, who predicted that some “lurking” geopolitical factor would disillusioned the U.S. equity markets a couple of weeks in the past, says that the S&P 500 is on track to hit 3000 in subsequent part of 2018.

“The upside of the marketplace is that we will get to three,000,” stated the vice president of Blackstone Group L.P.’s BX, -Zero.66% Private Wealth Solutions unit. He stated all over a CNBC interview: “I believe that’s realistic,” regarding the prospective upside for the S&P 500 index SPX, +Zero.22%

Wien’s comments come after he, in earlier in June, stated “my feeling is that there’s one thing lurking in the market,” that could disillusioned the inventory marketplace. Although, he wasn’t particular past pronouncing that he anticipated the drop to be geopolitical similar.

On Monday, the three main equity gauges suffered their worst tumble in months, with the Dow Jones Industrial Average DJIA, +Zero.12% falling by way of more than 300 points and ending a bullish long-term pattern, while the S&P 500 index SPX, +Zero.22% and the technology-laden Nasdaq Composite Index COMP, +Zero.39%  skidded by way of probably the most in one session since April 6.

The selloff was once partially sparked by way of elevated hostilities focused on global trade. Taking middle stage on Monday have been fresh worries that President Donald Trump would prohibit, or halt, Chinese investment in U.S. technology firms, coming amid escalating tit-for-tat rhetoric between China and the European Union.

Wien, on Tuesday, stated that the bull case for stocks was once still strong and underpinned by way of expectations for year-over-year earnings-per-share growth in the second one quarter that he estimated can be 25% upper.

However, the hoped-for upside from markets gained’t come with out traversing a gauntlet of trade-focused worries. The Blackstone vice president stated traders are ridden by way of confusion in rhetoric over insurance policies: “We have confusion on each and every level,” he stated.

As for the summer season, Wien stated traders must take a holiday as he predicts that markets will likely be “boring” until the November midterm elections truly get under method. Elections that can help decide the stability of power for the rest of Trump’s first time period as president and consider to outlook for further law that may deemed supportive to Wall Street stocks rallying.

Check: Opinion: Here’s how Trump’s fighters can journey a ‘blue wave’ to victory in the November elections

Mark DeCambre is MarketWatch's markets editor. He is based totally in New York. Follow him on Twitter @mdecambre.

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