S&P 500 May Rise 20% on U.S. Growth, O’Neill Says

The Standard & Poor’s 500 Index may rise as much as 20 percent in 12 months and the dollar is poised to climb as U.S. economic growth tops investors’ projections, Goldman Sachs Asset Management Chairman Jim O’Neill said.

The U.S. equity market will probably outperform the rest of the world and the dollar may strengthen 5 percent from current levels, O’Neill said in an interview in London today. The Federal Reserve will engage in another round of bond purchases, or “QE3,” if its current program fails to revive growth in the world’s largest economy, O’Neill said.