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From Reuters:

Citigroup Inc. set 2007 year-end targets of 1,500 for the Standard & Poor's 500 index (that's 14.3% over 15 monnths) and 12,750 for the Dow Jones industrial average, with the cash on corporate balance sheets providing some downside protection.

In a research note, analyst Tobias Levkovich forecast another year of high-single-digit gains. The risk of a decline in the S&P 500 index was modest given that at S&P 500 companies, excluding financial firms, cash holdings are about 8 percent of market capitalization.

Citigroup said that after weighing several factors, it predicted the S&P would range between 1,400 on the low end and 1,630 on the high end as 2007 comes to a close.

Given the current yield curve, this strikes me as somewhat overly optimistic.

Posted by edelfenbein at September 22, 2006 10:43 AM