2012 Estimates For S&P500 Earnings & Price Levels

In the December 19 edition of Barron’s, the cover story is titled “Buckle Up!

Included in the story, 10 “stock-market strategists and investment managers” give various forecasts including 2012 S&P500 profits, 2012 S&P500 year-end price targets, 2012 & 2013 GDP growth, and 10-Year Treasury Note Yields.

As seen on page 27:

The mean prediction of the 10 stock-market strategists and investment managers surveyed by Barron’s is that the Standard & Poor’s 500 Index will end 2012 at about 1360, some 11.5% higher than Friday’s close of 1220.

Also stated in the article:

The top-down call, or that of Wall Street’s market strategists, is that earnings per share will rise about 7% in 2012, to $105, for companies in the S&P 500, from this year’s estimated $98. The typically more optimistic bottom-up crowd of industry analysts calls for a 10% increase, to $108, although that forecast is down from an estimate of $113 in July.


I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not agree with many of the consensus estimates and much of the commentary in these forecast surveys.


The Special Note summarizes my overall thoughts about our economic situation

SPX at 1243.72 as this post is written