S&P 500 to Defy ‘New Normal’ and Rally, Barish Says

Energy and industrial companies will rise next year, propelling a 17 percent gain in the Standard & Poor’s 500 Index from its current level, according to Cambiar Investors LLC’s Brian Barish.

Next year will be marked by a “multi-speed recovery” as industries weakened by the recession, such as financial companies, lag behind those that are healthy and have cheap valuations, Barish said in an interview. He said stocks will perform better than would be expected under the “new normal” theory of the economy championed by Pacific Investment Management Co., owner of the world’s biggest bond fund, which says growth will be relatively slow in coming years.