Wall Street looks to ’07
TEXT OF STORY
DOUG KRIZNER: Wall Street observers are consulting their crystal balls to see how stock returns and earnings will do next year. Janet Babin reports from North Carolina Public Radio.
JANET BABIN: Many analysts on Wall Street are forecasting mid- to high single-digit earnings growth for next year. And some scenarios are even more bullish.
Nick Raich, with the National City Private Client Group, says on average, corporate profits will be up 10 percent, while stock market returns will hit 9 to 12 percent.
Still there are a few market worries that keep Raich up at night, namely uncertainty in Iraq and energy costs.
NICK RAICH: We saw oil spike earlier this year, we’ve seen it subsequently decline, but at any time if that starts to go back up it creates inflationary pressure.
And that could turn Raich and other analysts very bearish.
But for now, he says investors should expect nominal inflation and steady, but slower economic growth.
I’m Janet Babin for Marketplace.
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