BYRON WIEN: The Big Risk To The Stock Market I’ve Been Warning About All Year Will Start To Hit Next Week
OCT. 5, 2013
Blackstone vice chairman Byron Wien said in August that he was worried about the second half of 2013.
The veteran investment strategist is one of the most prominent proponents on Wall Street of the view that corporate profit margins are peaking, a phenomenon he believes will begin eating into earnings growth and become a negative catalyst for stock prices.
In January, Wien predicted that “a profit margin squeeze and limited revenue growth cause 2013 earnings for the Standard & Poor’s 500 to decline below $100, disappointing investors” and causing the index to trade below 1300.
That obviously hasn’t happened yet, but Wien thinks it could begin next week when the third-quarter earnings reporting season gets underway.