by Michael Tarsala
The market is likely to head higher from here, says Andrew Wilkinson, chief economic strategist, Miller Tabak & Co.
He's out today reiterating that the S&P 500 will reach 1450 by year's end -- about 8% higher from here.
Now, I did write that correctly. Wilkinson is an economic strategist, not a market strategist. Keep that in perspective.
What I do think is interesting though, is that you have an economic expert seemingly discounting QE3.
"What I don't see happening is an all-out collapse in global markets at this point," Wilkinson said on Yahoo Finance. " I do believe that the Fed will come to the rescue and get some of that traction back."
Some points of note:
-- Bob Gay is one of the investment managers I watch closely, and went long a number of stocks last week in his Earnings Surprise model, dropping his cash position down to about 15% from 30% as a result. I do see that as a sign that some stock values are out there.
-- Other Fed policy voters have expressed support for QE3 in the past few weeks, including Janet Yellen.
-- However, QE3 might not be a foregone conclusion. An extension of Operation Twist might be the first action the Fed takes from here.