Predictions from market experts for 2014

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The AP asked leading market analysts and investment managers where they see the Standard & Poor’s 500 by the end of 2014 and why. The index closed at 1,841 Friday.

BARCLAYS CAPITAL

Year-end target 1,900

The Fed pulling out of its stimulus program will lessen the support for U.S. stocks. Investors should focus on corporate earnings and the modestly improving economy.

CITIGROUP

Year-end target 1,900

Enticed by higher returns, investors will move some cash from bonds back into stocks.

BANK OF AMERICA MERRILL LYNCH

Year-end target 2,000

With the Federal Reserve likely to end its bond-buying program, bonds face a tough year. In stocks, the focus will be large multinational companies that can benefit from an improving global economy.

GOLDMAN SACHS

Year-end target 1,900

The rally of 2013 cannot continue. Stocks are no longer cheap. Investors are paying more than $16 for every $1 of earnings, versus about $14 at the beginning of 2012. Stocks will keep rising, but more modestly, Goldman analysts say.

WELLS FARGO SECURITIES

Year-end target 1,850-1,900

The stock market will trend higher next year, but the returns are unlikely to repeat the gains of 2013. Another round of budget battles between the White House and Congress and a new Fed chairwoman will likely affect the market’s growth.


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