Market expects 8% growth of S&P 500 in 2014

Indexes USANearing the end of 2013 – the year which was really impressive to investors. So far, stock indexes, especially those in more developed markets, offers more than well. Remains few weeks, but now the situation looks like this: Topix is up by 44%, S&P 500 increased by about 25%, while European shares measured by the Stoxx 600 rose 11%. In more general terms, MSCI World Index rose by 19%.
The year 2013 is the best of the last 15 years for US equity markets, with the greatest force this applies to S&P 500. The main question is – what can we expect next year?
Among the 20 surveyed leading experts most optimistic set of these Morgan Stanley. According to them, S&P 500 will go above the level of 2000 points in the next calendar year. In fact, they expect that in 2014 it will reach exactly 2014 points, an increase of 13%. The most conservative estimate does comes from Stifel Nicolaus, who expect a decrease. Currently, the index is at around 1775 points, and the company predicts that next year it will fall further to a level of 1750 points.
Taking all this into consideration, the average forecast of analysts shows that the S&P 500 will end next year at a level of 1927 points. This is about 8% above current levels, ie there is still potential for new records, as well as dividends. The dividend yield is expected to reach 2.7% in the next year. It seems that the upward trend of the market has more strength to continue. So far, investors prefer stocks of developed markets. Almost all pay attention to forecasts and plans of the Fed, as the stakes are when the central bank will begin rolling out incentives.

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