One of Wall Street’s most optimistic equity strategists told clients that the S&P 500 may rise even more than he expected this year. “There is actually upside risk,” JPMorgan Chase & Co.’s Thomas Lee wrote in a report on Thursday and that he expects the S&P 500 to end the year at 1,100, or 21% higher than Thursday’s close. Stable retail sales, a pickup in pending home sales, and other indicators signal the recession may hit bottom by midyear, leading to higher share prices, the report said. The S&P 500 rose 34+% from its March 9 low through Thursday’s close. “We want to become ‘slow buyers’ of stocks,” he wrote, citing the likelihood that prices will drop below their March lows before rising anew. This so-called retest would serve as a trigger to buy “in a larger way.”
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