However, his outlook for stocks is interesting in that he’s becoming increasingly bullish.
At the start of 2012 he predicted the S&P 500 would head to 1400. In his note today, he claims he really thought stocks would head much higher.
“I actually thought the S&P 500 could reach 1500 based on the generally achieved (but not last year) multiple of 15 times and operating earnings of $100,” Wien wrote.
He also addresses the elevated level of market bullishness, which most consider to be a contrarian sell indicator.
Wien disagrees with the contrarians. He think bullishness could actually be…wait for it…bullish.
From his note:
The combination of generally better economic data and an improved outlook for Europe has reassured investors. Over the past three months the pessimistic mood has changed to optimism. Most investors have been slow to put their money to work and, as a result, many hedge funds and long only investors are lagging behind the performance of the major indexes. Ordinarily, optimistic sentiment readings presage a market correction, but there are so many investors looking for an opportunity to increase their exposure that even a minor downdraft gets cut short by a flood of buyers. This could continue for a while.
SEE ALSO: Byron Wien’s 10 Predictions For 2012 >