S&P ups 12-month target on S&P 500 Index to 1,400 (SPX) (by Carla Mozee)

LOS ANGELES (MarketWatch) -- The investment policy committee at Standard & Poor's has voted to raise its 12-month target price for the S&P 500 Index (SPX) to 1,400 from 1,370, implying a 12-month gain of 7%, S&P Equity Research said Wednesday. S&P Equity Research said the committee voted to embrace a neutral, or 60%, weighting to global equities, by reducing its foreign exposure to 15% from 20%. It also raised its recommended bond allocation to 25% from 20%, remaining below a neutral 30% exposure. Suggested allocations to U.S. equities and cash are unchanged. "We still believe the S&P 500 is undergoing a digestion of the recent eight-month advance, rather than the start of a new bear market," wrote Sam Stovall, chief investment strategist at S&P Equity Research, in a report. "However, our reduced global equity exposure recommendation reflects an elevated risk of fallout from increased commodity inflation and geo-political events." The S&P 500 Index has gained 4% so far this year.