6 Reasons S&P Will Go to 1250 - Credit Suisse [View article]
I find points 3 and 4 quite compelling. As to PE ratio's being high - we are just emerging out of a recession. Also you have to look at PE's in light of low interest rates. Forward earning yield (e/p) is around 6.5%. 10 year bond rates are 4%. The FED model would assume stocks to be undervalued by over 50% (unlikely!). S&P 1250 in 2 years is certainly plausible. That is a 20% move from here.
-
I find points 3 and 4 quite compelling. As to PE ratio's being high - we are just emerging out of a recession. Also you have to look at PE's in light of low interest rates. Forward earning yield (e/p) is around 6.5%. 10 year bond rates are 4%. The FED model would assume stocks to be undervalued by over 50% (unlikely!). S&P 1250 in 2 years is certainly plausible. That is a 20% move from here.
Nov 06 22:46 pm
|Rating:
0
0
All Comments by E Nuff Sed »6 Reasons S&P Will Go to 1250 - Credit Suisse [View article]