Why 2014 Markets Could Be Just as Good as 2013

Your next video will start in

Recommended Videos

  • Info

  • Comments


Jan. 2 (Bloomberg) –- On today’s “Chart Attack,” Bespoke Investment Group Co-Founder Paul Hickey and Bloomberg’s Adam Johnson look at why we could see higher highs in 2014 on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Time for chart attack.

Paul, you have got a couple of charts to explain why we could actually have another good year on the hill -- heels of last year.

We look back historically.

When the market has 25 plus percent gain, in the next year ahead, what is the average year -- maximum year today gain?

Looking solely at history, the s&p 500, in the year following the 25% gain, the average year to date peak in the market is 15 .8%. so if history is any guide, for next year, -- you could see a 15% gain throughout the year.

That would take us to 2140 in the s&p 500. that is above what anything -- anyone is expecting now.

The average target is 5.5%. the maximum is 13% they are looking for.

More important like, you now do the same analysis for the nasdaq.

You see the average gain is about 26.3%. in all but two years, you have seen a gain of at least 10% at some point in the year following the return.

That is significant.

If i start to see -- i think this through.

Up 26% on the nasdaq takes us back to something very important.


It takes you back to the above all-time highs of the nasdaq, which we thought we would never see those levels again.

Not to say we would necessarily definitely finish the year out there, but they history, based solely on history, that would take us to about 5200. we are up more than 20% this year.

History says when you're up more than 20%, you typically get a 26% gain next year.

You apply that and we are -- you are right.

That was the all-time high.

Everyone thought that would never happen again and 2005 was a fluke.

You think that would take forever to do.

Just like death just like employment will take a new high, maybe we will see the nasdaq.

In fairness, it would take

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change