Investing

Stock Market Predictions for 2013 from Everyone! (BAC, BCS, C, CS, DB, GS, MS, PJC, UBS)

24/7 Wall St. has compiled an outlook from many sectors and for many indexes for 2013. Most strategists and economists are calling for upside. However, the fiscal cliff remains an issue in the final days of 2012, and the risk is an automatic recession in early 2013. We have compiled many outlooks and given some outlooks of our own, but we strongly caution that there could easily be some adjustments to any and all of these expectations.

Here are the preliminary expectations for the stock market in 2013:

Bank of America Corp. (NYSE: BAC) sees upside to 1,600 in the S&P 500 and gold to $2,000 by the end of 2013. The bank’s analysts offered 10 defensive stock picks with high yields for 2013.

Barclays PLC (NYSE: BCS) sees the S&P 500 rising to 1,525 in 2013.

BMO Capital Markets has a target of 1,575 on the S&P 500, but the strategist is cautious on earnings growth.

Canaccord Genuity sees upside to 1,650 in the S&P 500, and its Overweight sectors were consumer discretionary, information technology, financials and to a lesser degree industrials.

Citigroup Inc. (NYSE: C) sees the S&P 500 hitting 1,615 in 2013.

Credit Suisse Group A.G. (NYSE: CS) has a preliminary 2013 year-end target for the S&P 500 at 1,550, and it increased its Overweight rating in equities and would be Underweight in government bonds. The firm is reducing its Overweight of gold outlook and would stay Underweight in cash.

Deutsche Bank A.G. (NYSE: DB) sees a target of 1,500 on the S&P 500 index if the fiscal cliff is averted. The firm sees upside to 1,600 if dividend and capital gains taxes do not rise too much.

Goldman Sachs Group Inc. (NYSE: GS) sees the S&P 500 index hitting 1,575 over the next 12 months, with an earnings multiple expansion of 13.2 to 13.8. It sees GDP growth of 1.9% in 2013 and almost 3% in 2014. The firm sees more upside to European stocks in the DJ Euro Stoxx 50 Index, with close to 16% implied upside.

Morgan Stanley (NYSE: MS) expects a major rally if fiscal resolution issues are overcome. The firm’s initial projection for the S&P 500 is 1,434, with a bull case of up to 1,733 and a bear case of down to 1,135.

Piper Jaffray Companies (NYSE: PJC) sees upside to 1,700 for the S&P 500.

Standard & Poor’s Capital IQ sees a 1,550 close for the S&P 500.

UBS A.G. (NYSE: UBS) is only mildly bullish with an expectation of 1,425 for the S&P 500 in 2013.

We also have many other outlooks for sectors and other markets as well:

Again, some of these numbers and some of these picks will change, particularly if the fiscal cliff is not averted.

JON C. OGG

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