Wall Street Strategists Have Been Underestimating The Stock Market For Years

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Wall Street's top stock market strategists have been publishing their predictions for 2015.

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While every strategist expects to see gains next year, most think those gains will be modest.

However, Fundstrat's Tom Lee thinks that's a mistake.

"Be contrarian," Lee wrote in a new note to clients. He sees the S&P rallying 15% to around 2,325 by the end of 2015.

"We realize that the skeptics are rolling their eyes, believing that everyone is too bullish. But take a look at the history of the Street in forecasting S&P 500 actual returns. For 5 of the last 6 years, the Street has underestimated the market close, with the exception being 2011 (when the budget showdown and S&P downgrade hurt equities)."

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According to the data, Wall Street strategists have underestimated where the S&P would go by around 5% on average.

"If 2015's forecast error is 5% again, the S&P 500 would close at 2325 or higher," Lee wrote.

Of course, that's a big "if."

cotd strategistsFundstrat Global Advisors