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Deutsche Bank analyst Binky Chadha has gone massively bullish on equities with his 2011 predictions, calling for the S&P 500 to hit 1550 by the end of the year.”All sectors are cheap and valuation dispersion at an all-time low,” he writes (via ZeroHedge).
While equities across the board are cheap, there are some particular opportunities out there, according to Chadha.
- Look for growth stocks, value stocks have been overbought in comparison
- Large market cap stocks over small
- In particular, financials, industrials, consumer discretionary, and tech look good to Chadha
But why this surge? Chadha says that the jobs market is about to turn around in the U.S. and centrist U.S. policies are going to be conducive to growth.
However, these are some possible risks:
- Bond market correction gets a bit chaotic
- The crisis in the eurozone continues to cause disruptions
- China and or other emerging markets tightening
- Or a municipal crisis in the U.S
But don’t worry, Chandha isn’t too worried about these. He thinks the positive factors are way more powerful.
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