Last week, Deutsche Bank hired David Bianco to be its Chief U.S. Equity Strategist, according to multiple sources close to the matter. Deutsche Bank is expected to publish a press release on the news this week.Bianco made headlines last September when he boosted his bullish call on U.S. stocks as the global economic picture appeared to be deteriorating rapidly. Specifically, he lifted his 12-month price target on the S&P 500 from 1400 to 1450.
His note, dated September 11, 2011, also included this extraordinarily prescient piece of insight:
Discipline & courage earn gains–S&P 500 typically rallied 15%+ Sep-Jan when priced for a recession that didn’t come.
In the prior “near-miss recessions” of 1967, 1985, 1995, 1998, and 2003 (when the Mfg. ISM fell below 50 but a recession didn’t occur), the S&P 500 delivered an average Sept-Jan return of 15%.
We recently noted that since his note was published, a recession didn’t come and the S&P 500 had risen 16%
Bianco has made his rounds on Wall Street. Prior to Bank of America, he held positions as Chief U.S. Equity Portfolio Strategist at UBS, Chief U.S. Quantitative Strategist at Deutsche Bank, and senior equity analyst at Credit Suisse First Boston.Bianco will be replacing Binky Chadha. Of the Wall Street strategists recently surveyed by Business Insider, Chadha was the most bullish with a 1500 year end target for the S&P 500.
Sources tell us that Chadha is expected to stay at Deutsche Bank. However, we have yet to confirm his exact title.