"Morgan Stanley threw down the gauntlet on the stock market today. Just days after the Standard & Poor's 500 Index hit 2,000 for the first time ever, the Wall Street firm's chief equity strategist, Adam Parker, and economist Ellen Zentner said the benchmark index will hit 3,000 next!
A further rise of 50 percent? Really? That's a pretty bold call considering the S&P 500 has already tripled from its low of 667 in March 2009 (even though they qualify that target by saying we might not see it until 2020).
What's more, it comes just days after other experts went on CNBC and warned of a whopping plunge of up to 60 percent in stocks. That would send the S&P 500 to the 1,000 level and beyond – as low as 800!
The bulls at Morgan Stanley say we can count on an improving economy and lower levels of household and corporate debt to drive stocks higher. They believe we are only halfway through the current expansion.
The bears CNBC talked to say that's a bunch of baloney! Tice Capital President David Tice said the loss of confidence in central bankers will lead to a "period of extreme turmoil." He was joined by Peak Theories Research founder Abigail Doolittle, whose technical indicators are warning of a crash of 50-60 percent."
