“While some analysts think that the bull market for stocks may soon grow tired, former Value Line research director Sam Eisenstadt disagrees.
Eisenstadt, who spend 63 years at the firm before retiring in 2009, thinks the Standard & Poor’s 500 Index will reach 1,520 at the end of August, up 8.3 percent from Friday’s close, Marketwatch reports. That wouldn’t quite take the index to its record of 1,565 set in October 2007.
But if the Dow Jones Industrial Average gains 8.3 percent, that would put it at an all-time peak of 14,326.
Eisenstadt uses a variety of economic and financial statistics to form his projection for the market.
The Value Line legend’s track record has been good recently. In mid-December, he forecast a 10 percent rise for stocks in the first six months of 2012. The S&P 500 has gained 12 percent so far this year.
While Eisenstadt has enjoyed plenty of success with his model, he’s made mistakes, just like all market gurus. At the middle of last year, he predicted that the S&P 500 would gain 5.7 percent for the remainder of 2011. Instead it fell 4.8 percent.
Others share Eisenstadt’s current enthusiasm for stocks.
“Fundamentals are improving, corporate profits are rising, and the market has really good upward momentum, Stephen Wood, chief market strategist for Russell Investments, tells Reuters. “I think we still have room to rise.”
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