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Some investment experts say the stock market's post-election rally is overdone. Wall Street eminence grise Byron Wien, vice chairman of multi-asset investments at private equity titan Blackstone, disagrees.
He figures that President Trump will be able to implement about half his program of deregulation, tax cuts and infrastructure spending. That should be enough to push the S&P 500 index to 2,500 this year, up 5.4 percent from its March 13 close of 2,373, says Wien, who spent 21 years as a top investment strategist at Morgan Stanley and is known for his annual list of ten surprise predictions for the market.
He also believes the current trend toward passive investment management will reverse, as financial markets begin to move in a less correlated manner.
Wien recently spoke to Wealth Management about what has changed in the investment business over the last 50 years, how it might change further in the future and how much he still believes in his 2017 predictions.
Wealth Management: The stock market has been on a tear so far this year. Do you think it will last?
Byron Wein: If President Trump is able to implement his pro-growth program of tax cuts, deregulation and infrastructure spending, growth could increase from 2 to 3 percent and there would be a more sustainable trend in earnings in more sectors. That would make...