"strategist" says s&p to 1600 next year, so buy all dips!

Discussion in 'Trading' started by S2007S, Sep 28, 2012.

  1. S2007S


    There are already predictions for 2013 and this being one of the first of the bunch where she sees the SPX breaking its 2007 high and trading at 1600, so this means that the spx under 1450 is a HUGE bargain. Means that there are plenty of gains to come and that any downside in equities will be limited by the one and only BUBBLE ben bernanke. So buy now and wait comfortably for SPX 1600 because this BAC "strategist" says 1600 is coming really soon!

    S&P 500 to Hit Record High in 2013: Strategist
    CNBC.com | September 28, 2012 | 08:13 AM EDT

    With three months to go in 2012, Bank of America Merrill Lynch’s head of U.S. Equity and Quantitative Strategy Savita Subramanian is one of the first on Wall Street to make a call for 2013.

    She’s forecasting the S&P 500 [ .SPX 1441.39 -5.76 (-0.40%) ] will hit a record high in the year ahead and top out at 1,600. The current all-time high for the S&P 500 was set on October 9 2007 when it hit 1,565.

    In a note from the firm, she says: “our 2013 year-end target of 1,600 implies a ten percent return where most of the appreciation can be attributed to earnings growth of seven percent.”

    Subramanian adds: “our target incorporates a diverse set of signals, most of which are positive on equities."

    But there are also some signs of caution. Wall Street sentiment remains weak. There is also continued concern about the approaching "fiscal cliff".

    Unless Congress and the White House agree to a wide ranging deal on a number of fiscal issues there will be massive spending and benefit cuts just as the tax cuts enacted during George W. Bush’s Presidency come to an end.

    Subramanian however adds that she believes “some uncertainty will likely be removed by the end of next year.”

    She also believes the United States will not sink into another recession, at least not in the short term.

    Citi’s Chief U.S. Strategist Tobias Levkovich also made an early call on 2013 two weeks ago. He was slightly more bullish calling for the S&P to hit 1,615 in the year ahead.

    As for the months ahead, Subramanian believes the S&P could be in for a correction. There’s concern economic growth will be weak, evidenced by Thursday’s release of second-quarter gross domestic product (GDP).

    GDP came in at 1.3 percent, while economists were expecting 1.7 percent. Durable goods for August also came in weak, falling 13.2 percent.

    Subramanian also worries that consumer spending will drop in the fourth quarter and that the U.S. could be in for another credit downgrade.

    Subramanian’s S&P target for this year remains at 1,450.
  2. pikers. i will see your 1600 and raise you to 1900:
    Near Perfect Conditions Suggest 30% Rally for Stocks in Next 12 Months: Hays
    If he's right, by this time next year the S&P 500 would be on its way to topping 1900, firmly in record territory.

    it could happen. its as simple as this. there is no place else for money to go.
  3. We'll revisit this one and see how it works out, Nostradamus.
  4. S2007S


    New prediction for year end, this just makes you want to buy every single 7 point dip from now until the end of 2012 when he predicts a 7% ride higher to SPX 1550!!!!

    Its literally free money to those who want to just buy the SPX and sit back and collect, where else are you going to get a risk free 7% return on your money in the next 3 months, the answer is no where. This guy has to be right, he is a bull and you should be as well!!! HA

    S&P 500 Will Finish the Year Near All-Time High: Schoenberger
    By Jeff Macke | Breakout – 2 hours 25 minutes ago

    With the first 3 quarters in the books, 2012 has been much stronger than expected for U.S. equity markets. Despite a soft finish, the S&P500 is up more than 14% YTD and the Dow Jones Industrial Average clocking in with slightly less than a 10% gain.

    It's been a good nine months but there's still 3 months left in quarter. Todd Schoenberger from the BlackBay Group joined Breakout to discuss his outlook for the end of the year. Having lost a $1 bull/bear wager last May Schoenberger settled the bet and got to make the opening argument for which way stocks are headed between now and New Years Eve.

    "Bull! I'm gonna be a big bull," says Schoenberger, not wasting a minute. "You should be long, strong, equities and maybe use leverage where appropriate." It's all about the Fed as he sees it. Nothing Bernanke and Co. can do will fix what ails the economy but it doesn't really have to. $40 billion a month in MBS purchases and the vow to do more as needed will be enough to get the markets to look past the nearly endless list of obstacles for stock prices.

    No matter what happens, "the Fed is there to save the day."

    Schoenberger only has two real concerns for the next 10 weeks. The first is the familiar Fiscal Cliff. No one's thinking much about it now but it's "out there" and could become a more acute concern in the likely event that no progress is made by politicians before the new year.

    The other rally stopper would be Mitt Romney winning the Presidential election. While a long shot according to the polls, there's still more than a month before the election. If Romney wins, he's said he'll get rid of Bernanke in January 2014 when the Fed Chairman's term ends. A new Fed head would have to be tighter on monetary policy, if only because it would be impossible to be looser.

    Barring those two factors Schoenberger sees no reason to hedge his bet. "Your viewers right now want to know how they're going to make money," he correctly notes. He thinks viewers should ride consumer discretionary and growth names into the end of the year when he says the S&P500 will be 1,550.

    It's in the book: Todd Schoenberger sees the S&P500 rallying another 7% in Q4 to close 2012 at 1,550. For what it may be worth I'm bullish, only less so. I'm taking the under.
  5. ronblack


    Never believe strategists. They get bullish during dumping time.