Forecast of Well Fargo index S & P500 - 1140 (16% reduction versus current levels) by the end of 2013 (which actually means that the entire increase in the index in 2013 will be destroyed).
It is interesting that the multiplier index - P / E - increased from 17 in January to 20 to the present. This means that the shares rose because investors are willing to pay more based on the total profits of companies of the index. Wells Fargo strategists argue that the rise in yields on trezheris from 1.6% to 2.7% - this is just a market shock that the stock market has simply not had time to digest. If there is a change at the rate of Treasury debt of 100 bp (1%) - to be correlated compression by multiple P / E. Actually, the forecast is "minus 16%" before the end of 2013, and proceeds from discounting S & P to the corresponding increase in profitability trezheris + subsequent correction index caused investors to panic.
