Prudential Predicts a Historic Decade for Stocks

NEW YORK (TheStreet) -- Prudential Financial, the asset management and insurance company founded in 1875, says this year may host a historic event: the beginning of a decade in which stocks outperform bonds, the first time in a generation. While bonds have led equities for three decades, Prudential's investment team "would not rule out the possibility of a shift this decade to a regime where stocks offer not just superior returns, but a superior risk/return trade-off compared with bonds." Prudential Chief Investment Strategist John Praveen predicts the S&P 500 Index will rise to 1,430 by year-end, a gain of 13%. Low stock values, near-record-low interest rates, robust corporate earnings and modest growth in the overall economy (2.4% versus a consensus of 2.1%) will propel the equity market, he said. The risks are the uncertainty of the eurozone debt crisis, gridlock in Washington and a potential hard landing of China's economy. ... Click to view a price quote on AAPL. Click to research the Computer Hardware industry.

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