ANALYST: The S&P Is Going To 1900

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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.

Read the whole thing here >

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