And Like Clockwork, Here Is David Bianco's Attempt At Stick Saving The Rally
One again, the seemingly immortal David Bianco, who for some odd reason constantly evokes allusions to the green sock puppet from the Muppets, is once again forced to be sacrificed at the altar of credibility, having just released a report hiking his S&P500 estimates. To wit: "We raise our 2011 and 2012 S&P 500 EPS estimates to $97 and $104 from $95 and $102 respectively. Despite a moderation in overall US GDP growth, S&P 1Q EPS is coming in significantly higher than expected on stronger manufacturing activity and business spending, higher foreign profits and commodity prices,and a weaker dollar. Half of the increase in our 2011 EPS is from higher 1Q EPS, which we expect to come in at $23.50 (Table 2). Mid-$90s annualized EPS in the seasonally light 1Q supports a more robust EPS outlook." This comes just in time for the economy to take a confirmed dip lower following recent consistently lower economic releases capped with today's Services ISM. And why Immortal? We hearken back to the following Bloomberg article from November 2007: "None of that swayed Cohen, Trennert and Bianco. They say low equity valuations, overseas growth and the prospect that the Federal Reserve will cut its interest rate target for overnight loans between banks can lift the S&P 500 to a record 1,600 this year." This never happened, and in fact Bianco top ticked the market to the dot. How he still has a job is beyond anyone with half a working frontal lobe.