Thomas Lee advances from runner-up to reclaim third place. The J.P. Morgan strategist earns praise for “making the right market call for the past year,” as one booster says. “He does a huge amount of work,” the money manager adds, “and he doesn’t rely on hunches. All of his arguments are data driven.” Lee, who has been bullish on the S&P 500, is forecasting that earnings per share for companies in the S&P 500 will rise to at least $120 in 2014 and peak at $150 to $170. This implies a return on equity of 18 percent by 2017, he says. In addition, he believes that demographic trends in the U.S. will have a positive impact on the overall economy. The U.S. population is forecast to rise by 30 million between 2007–’17, he notes. And “we have seen so little investment in the last five years, that means major construction spending between 2013 and 2017.” Sectors most likely to benefit from these positive trends, he advises, are basic materials, consumer cyclicals, financials, housing and technology. — Paul Sweeney |
The 2013 All-America Research Team: Portfolio Strategy, No. 3: Thomas Lee