Byron Wien, the legendary Wall Street investor and chairman of the board of the largest equity fund Blackstone Advisory Partners, believes that US stocks will fall at the end of the year, however, be able to avoid falling into a bear zone - on AMarkets materials.
Vin predicts a drop of 20% . The indicator of consumer spending is quite decent. Sales rose 4.8% in the second quarter and by 25% if you count from 2011. The housing market is also on the positive. Bond market also speaks about the relative optimism of investors. From the beginning, the S & P500 broad market rose by 5.4% and is trading well with minor setbacks. His current dynamics suggests that up to a peak value (after which the fall) there is still time. Especially that growth favors the macroeconomic environment - a large-scale monetary easing by major central banks, as well as the policy of zero interest rates -. Arguments which overlap the negative of the upcoming elections, unrest in the Asian region, terrorist attacks, etc. But in the end, the action pass by your peak and adjust - said the expert.
The trigger will serve as the weak performance of corporate profits. The company has no room to maneuver in the direction of increasing financial performance - in particular, no one is eager to increase capital expenditure to expand production and hire new people. Corporate bosses are focused on the growth of quotations, which is achieved through the repurchase of own shares.