The S&P 500 stock index is “more likely to be above 1,400 this time next year than below 1,000,” Jim O'Neill, chairman of Goldman Sachs Asset Management, said in a set of predictions released Monday.
It closed at 1,205.35 on Monday.
Among his other predictions, Mr. O'Neill wrote in his Viewpoints report that the euro is more likely to reach $1.10 next year, rather than $1.50.
“I doubt it will see both, and it might not see either,” but $1.10 is more likely than $1.50, he wrote. The euro was at $1.2996 at 4:20 p.m. EST Monday.
“As I have said in the past few weeks, the (European Monetary Union) cannot survive without Italy in it, and Italy cannot survive with (6% to 7%) 10-year bond yields,” he said in the report. “In that regard, the stage that this crisis has moved in recent weeks is both scary and exciting.”