Here’s the latest analyst to double down on bullishness, with stocks remaining near all-time highs.
Paul Murphy at FT Alphaville flags the latest call from Credit Suisse’s Andrew Garthwaite, who predicts the S&P will surge to 1900 in 2014 (it’s currently at 1631).
Some key points:
- The equity risk premium is still too high.
- There’s too much fear of the tapering of QE. The Fed balance sheet will still be expanding even if bond purchases slow somewhat.
- Long-term equity fund flows remain low. There’s lots more money to come into the market.
- Economic momentum is turning up.
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