Citi Raises 2014 S&P 500 Price Target To 1,975

Citi has raised its price target for the S&P 500 (INDEXSP:.INX) to 1,975 by the end of 2014, even though sentiments are ‘euphoric’, tapering is underway, and the company thinks there is a good chance of a downward correction in the first half of the year.

“The next year is unlikely to be as profitable as the past year, but it is also improbable that the market gets derailed even though sentiment is less than compelling,” writes Citi analyst Tobias Levkovich. “There were some major pullbacks between 1982 and 2000, during an uncontested secular bull run and significant pullbacks can occur just as major rallies conversely can happen during secular bear markets.  We...