Stock Market predictions 2011 - Stock Market Predictions

STOCK MARKET PREDICTIONS 2011

What do the various equity industry experts predict what the stock market has in sore for us in 2011? You can of course find wild predictions from up 25% to down 25% and more. But what is the most likely scenario for the stock market in 2011? There are certain things one can predict and some that one can't, take the Egyptian revolution as an example. The US economy has had a decent recovery since 2009. Remember creation of jobs is always the last to happen. The S&P 500 has exactly doubled off its 2009 low of 666. With such a good run already in place, Is now the time to buy or sell? We look at the factors below.

Here are what some popular stock market insiders predict will happen in 2011.

Stock market predictions 2011

Goldman Sachs David Costin foresees a high of 1379 in the S&P 500 which would indicate a 17% rally.

Noted columnist Jim Jubak predicts a "wild Ride for stocks in 2011". He sees periods of up and down market behavior with China being a key influence.

Steve Crist is more sceptical of the equity markets. He notes in particular that the economy need to create 239,000 jobs every month just to stay even with population growth. Something that does look hard to do.

Several key factors will determine how the stock market behaves in 2011. Interest rates, the Federal Reserves bond buy back program QE2, the federal deficit as well as mutual fund inflows are all key to how the stock market will end 2011. The rate at which this country is printing money and the national debt will make it very difficult to keep interest rate low in the long term. QE2 is meant to do just that, but it may just be a house of cards that comes crumbling down. If interest rates rise it will kill any rebound in the real estate market which has always been a driving force for the US economy.

The Fed's QE2 also has negative implications for the dollar. If the dollar continues to weaken, it will drive the price of gas up and also lead to inflation. Both of course negative for the stock market in 2011. Fundamental as well as technical influences will also have an influence on predicting the equity market.

I hope you enjoyed reading our stock market predictions for the year 2011!

Stock Market Predictions

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