Some observers are totally bullish on the new year,but Tobias Levkovich,Chief U.S. Equity Strategist at Citigroup,recalls that we still have geopolitical risk to consider.In addition,we haven't really talked a lot about gasoline prices,which have been climbing markedly lately.
Political heat will occur in the latter part of 2011,as primary election issues come into focus.At that juncture,a separation of the parties will take place.People want something done in Washington,but at some point the paths totally diverge.
Health care will be going on for a couple of years in the courts.The funding of it will be an interesting battle to see,but commodity prices will be much more interesting to the markets.
Profit margins are not being paid attention to.Around mid-year,that could be an issue.Wage creep that pressures the margins could be a big issue.We're looking at the S&P 500 reaching a level of 1400 in 2011.We think the beginning of the year will be relatively strong;then there will be a pullback on some of these margin issues.
We review our targets in December.What drove the markets in December were the tax cut extension and payroll tax deduction,Mr.Levkovich said.A Canadian citizen who frequently appears on business television,he writes a report card on his own performance every year.
Citigroup(C)
No comments:
Post a Comment