Investors Clearly Gripped By Euphoria: Citi

The Business Insider says the average call, across 14 top market forecasters, is for the S&P 500 to touch 1,955 by 2014-end. This would imply another 7% upside from Friday’s close of 1831. And that’s on top of the nearly 30% the index has already put on in 2013.

So market analysts are still bullish about the equity market in 2014, though expectations for growth are somewhat muted.

What about investors at large?

“Our Panic/Euphoria model remained in euphoria territory…Euphoria readings indicate the market may retreat with an 83% historical probability of losses in the next 12 months,” says Citi’s Chief US Equity Strategist, Tobias Levkovich and analysts Lorraine Schmitt and Christina Wood, in their latest PULSE Monitor of January 3.

The Panic/Euphoria...