Behind the Numbers, with Jeffrey Kleintop
In his May 4 weekly commentary LPL Financial's chief market strategist noted that, "The prospects for recovery by year-end have improved even as near-term uncertainty has increased. Investors appear to be extending their investment time horizon more so than at any other time of the past year, focusing on the prospects for a recovery in the economy and earnings over the next twelve months...We now believe the consensus is a reasonable forecast for both 2009 and 2010. If the 2010 consensus estimate of $73 and the current next twelve month P/E of about 14 holds at year-end 2009, the S&P 500 would end the year at about 1000--in line with our base case forecast...While a pullback or consolidation of recent gains may take place in the coming months, we believe stocks have likely made their low for 2009 and remain committed to our forecast for modest gains for stocks and bonds this year."--Robert F. Keane
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