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Investing Legend Byron Wien Predicted 10 Big Surprises For 2012 — Here's How They Actually Did

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byron wien

Blackstone Vice Chairman Byron Wien has a long history of guessing what could surprise us in the upcoming year. He's posted a list every year since 1986, which includes his time at Morgan Stanley.

"My definition of a surprise is a market-influencing event that the average investor would assign only a one-out-of-three chance of taking place during the year," writes Wien.

Typically, around half of his surprises actually happen.

We've checked Wien's 2012 surprises, and we've given him an above-average score of 50.3 percent.

Some of his surprises were spot on. Some were dead wrong. And some were worthy of partial credit.

Oil prices decline to $85 a barrel.

RIGHT

Wien really hit the nail on the head with this call, correctly forecasting the price drop due to increase share of shale and less dependency on oil from the Middle East. After a brief spike in early 2012, oil prices hit $85/barrel and reached a low of $77.72 on June 28. Currently, the price per barrel hovers from $85 to $90.

Tally: 1.0/1.0

Source: St. Louis Fed



S&P 500 heads above 1400.

RIGHT

The S&P 500 started the year below 1300, but eclipsed 1400 in March before reaching a high of 1465.77 in mid-September.

Tally: 2.0/2.0

Source: Yahoo Finance



Real GDP growth exceeds 3 percent, unemployment drops below 8 percent.

HALF RIGHT

In the third quarter, unemployment managed to break through the 8% barrier, making half of Wien's prediction come true. However, GDP growth remains mired below 3%.

Tally: 2.5/3.0

Source: Y Charts



See the rest of the story at Business Insider

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