The market may be cheering the Citigroup (C) bailout, but one of the bank’s top analysts suggested that the cork go back in the bottle. There won’t be any party between now and New Year’s.
According to MarketWatch, "Citing declining earnings outlooks and "extraordinary risk aversion," Citigroup U.S. equity strategist Tobias Levkovich cut his targets for the S&P 500 He now sees the S&P 500 ending the year at 850, down from 1,200 previously and only 10 points higher than its current levels. By the end of 2009, the index of large capitalization companies should rebound modestly to 1,000 — instead of the 1,300 previously targeted.
Douglas A. McIntyre