Blackstone’s Byron Wien, who predicted that some “lurking” geopolitical factor would upset the U.S. equity markets a few weeks ago, says that the S&P 500 is on track to hit 3000 in next half of 2018.
“The upside of the market is that we can get to 3,000,” said the vice chairman of Blackstone Group L.P.’s BX, -0.66% Private Wealth Solutions unit. He said during a CNBC interview: “I think that’s realistic,” referring to the potential upside for the S&P 500 index SPX, +0.22%
Wien’s comments come after he, in earlier in June, said “my feeling is that there’s something lurking out there,” that could upset the stock market. Although, he wasn’t specific beyond saying that he expected the drop to be geopolitical related.
On Monday, the three main equity gauges suffered their worst tumble in months, with the Dow Jones Industrial Average DJIA, +0.12% falling by more than 300 points and ending a bullish long-term trend, while the S&P 500 index SPX, +0.22% and the technology-laden Nasdaq Composite Index COMP, +0.39% skidded by the most in a single session since April 6.
The selloff was partly sparked by elevated hostilities centered on global trade. Taking center stage on Monday were fresh worries that President Donald Trump would limit, or halt, Chinese investment in U.S. technology companies, coming amid escalating tit-for-tat rhetoric between China and the European Union.
Wien, on Tuesday, said that the bull case for stocks was still strong and underpinned by expectations for year-over-year earnings-per-share growth in the second quarter that he estimated would be 25% higher.
However, the hoped-for upside from markets won’t come without traversing a gauntlet of trade-focused worries. The Blackstone vice chairman said investors are ridden by confusion in rhetoric over policies: “We have confusion on every level,” he said.
As for the summer, Wien said investors ought to take a vacation as he predicts that markets will be “dull” until the November midterm elections truly get under way. Elections that can help decide the balance of power for the remainder of Trump’s first term as president and factor in to outlook for further legislation that may deemed supportive to Wall Street stocks rallying.