Hays Advisory Figures +21-27% for the $SPY in 2011

So, what does 2011 bring? It is a pure guess if you come up with some target for the year, but investors do crave a target so here goes. We believe by the end of this year, the earnings for the S&P 500 will be over $100. Today that is selling at a price-to-earnings ratio of only 12.7. Our studies tell us that should be 17 in normal times. So, let’s go half way and say that by 12/31/2011, we’ll see the earnings expectations for the coming year between $100 and $105. That will produce a target of 15 times ($100 or $105). So, with the S&P 500 today at 1240 and a target in the range of 1500 to 1575, we see a projected gain of 21-27%.

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