Bernanke's S&P 500 Year-End Forecast: "Conviction Buy", $2000 Price Target

Tyler Durden's picture

Given his reiteration last week that the Fed is here to stay - and his fellow dovish lapdogs' confirmation that we can all rest assured that our 'wealth' is being protected - we know that the Fed balance sheet will hit around $4 trillion by year-end. Given the hyper-correlation over the past three months between US equity performance and the daily pump of POMO, it appears clear that Bernanke's target for the S&P 500 by year-end is around 2000 (unless of course you think there is even a little bit of market efficiency and discounting left in the world).

Is this what the Princeton Professor is looking for?


Or did the market front-run as usual and has already priced it in?


and maybe the post 2010 valuation highs for the Dow will slow things down a little?


Charts: Bloomberg

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dracos_ghost's picture

First Jacob's Ladder, now Birinyi's ruler.

Middle_Finger_Market's picture

50 to 1 people are rioting on the streets before the SPX hits 2k. 

CPL's picture

They have been for the last three years.  The rioting isn't new.

hedgeless_horseman's picture



Conviction Buy, $2000 Price Target


Mark Carney's picture



Just woke up from a coma, been out since 2006.....I see we are still going strong moving up to 15k, let me check my stawks....oh shite?

King_of_simpletons's picture

House of cards will finally fall. Don't ask me when but it will.

malikai's picture

Russell 2k seems quite muted compared to the dow and s&p.

ShorTed's picture

they'll pump any index they can to suck in as much "dumb money" as is left out there.  Widows and orphans beware!

Dr Paul Krugman's picture

Zombie gold bugs will be clutching their precious rocks as those of us in the know - and as Alan Blinder pointed out, even the hawks agree with the doves - understand that in order to grow we must suppleent the recovery.  As we do so the fear trade - gold - will subside and growth will rise as revenue picks up.

But keep collecting your metal, I am sure one day your children will be happy to have so many pretty things.

Dr. Engali's picture

If only my precious rocks hadn't fallen to the bottom of the lake I'd go clutch them right now. The good thing about being a zombie is you don't need scuba equipment ,nor do you have to come up for air .

Uber Vandal's picture

But keep collecting your stocks, I am sure one day your children will be happy to have so many pretty things for wall paper, if they opted for physical stock certificates.

Fixed it for you.

You're welcome.

P Rankmug's picture

Actually, in order to grow we need a monetary and fiscal environment which encourages the efficient exchange of production.  Not increasingly worthless pieces of fiat paper distributed via idiotic demand theory in the fantasy that they will magically alter the terms of trade and somehow fool producers into increased production.  Relative to the global competitive monetary devaluation in our fiat floating world, gold will maintain its value.  Gold's stability as a monetary proxy has proven to be constant over the course of civilization.  Nothing has changed in that regard good doctor.    


Paul, you can't be that far out in left field..can you? The only growth I see is debt, taxes, healthcare..and perhaps bullets and guns.

resurger's picture

am sure that you childern will spit on your grave when you die mother fucker ... no one will show on your funeral and even the priest will be so broke that he prays that you burn in the 7th hell ... God has a special place for Keynesians next to Louis, Hitler, Mao, Bush, Ben and the rest of them.

Your end will be a very bad one.

LawsofPhysics's picture

The purchasing power of my physical holdings remains very much intact relative to that $300 and $8 an ounce dollar cost average for gold and silver respectively.  Thanks for caring Krugman.  Unfortunately for you, real growth would require an increase in the avialable energy for delivery.  Growth in monetization?  Sure we can do that, but it will only accelerate the death of paper as there is no collateral behind all those paper promises.  

venturen's picture

you mean when those dollars are worth 1 yen each?

knukles's picture

Paul, you need to get some rest. 
That confession about being off on the Scarborough debate because you're tired doesn't hold water.  I mean you're here posting and re-posting nonsense periodically in the wee late hours, east coast time. 
Many of us here, if we didn't know better, would assume that you're using ZH as others during moments of self absorbed escape fall into a telephoneitis habit.
Then again, how would we know of suspicions such as those?
We're worried about your health.
Very worried.

geotrader's picture

Is this guy Bernanke's alias?

Dr. Engali's picture

$2000 ? I'm going for a trillion.

Tombstone's picture

Conviction Buy:  $2000 Price Target.    SILVER

samcontrol's picture

i guess we don,t understand riot in the same way.

DJ Happy Ending's picture

With Jim Cramer saying things will end badly, I am beginning to wonder if everything will turn out ok.

knukles's picture

Now you really went and done it, messed my day up.
Sometimes connecting the dots is cruel.

tawse57's picture

Did Cramer say this? Today? About the new DOW high?

knukles's picture

Yeah, he said today there'd be a new high before the close just after the open.  Said the Krugster's got his back.

Say What Again's picture

Is anyone else out there old enough to remember when you could put money in a savings account and get 2% to 4% interest?  If you were really a wild and crazy cat, you could place the money in a "CD" (later replaced my MP3s) and get 5% !!!


Those were the days...

knukles's picture

And it was the advent of the Free Shit Army, with Toasters and all!

Poetic injustice's picture

In Europe you can still get 3-4%, and I am not talking about Greece.

LawsofPhysics's picture

Do tell.  Links?  Please don't drop bombs like that without backing it up.

Poetic injustice's picture

In Germany, some banks offer. Probably in other countries too.
If you really really want, can drop some links later. Saw it on posters in city.

Id fight Gandhi's picture

Yah like 6 years ago. Could get those in a regular MM.

Tombstone's picture

I remember money markets paying 12-15%.  We will get there again, as the world monetary system blows up.

samcontrol's picture

cool , my family was rich in those days, notso much now with my miners.

CPL's picture

To close that gap they would need to print 9 trillion dollars.


$4 trillion would only give another 200 points.

resurger's picture

The easiest thing to do.

bank guy in Brussels's picture

One famous person who people forget was a central banker, was Ernesto 'Che' Guevara, of whom it is written:

« From 1961 to 1965 Guevara was ... director of the national bank, signing the bank notes simply 'Che'. »

Made me wonder if now Bernanke just signs off on another trillion, with a simple ... 'Ben'

Ratscam's picture

rat is too nice of a word.
I prefer calling him a cockroach.

SamAdams's picture

I prefer enemy of the Republic. 

El Viejo's picture

Chaos theory says first comes diminishing returns and then comes negative returns.

CPL's picture

Yes sir, that it does.

knukles's picture

OK, so another 33%.
(Yawn... it's just not weird enough, yet)


Or I could have 10 of the 30 year treasurie.
Or 100,000,000 of them overnight repos.
Each seems as incredibly attractive as the next, don't it?
In the land of infinite money even Krugman can be King.

Hedgetard55's picture

Meanwhile salaries stagnate, the economy sucks, cost of living rips, but it is all good, as Ben and his bankster masters get their swag. And BTW, priced in gold the DOW is down 53% from it's 2007 peak ( hat tip ZH). Nominal numbers are, well, nominal, meaning worthless.

CPL's picture

That's the plan.  Guys like buffet, gates, etc are going to be eating dog food from a can with a stick before long.

fourchan's picture

the Istick and ichow are the next new trends.

resurger's picture

yes, S&P 2000 is what he's looking for ...No way out

TruthInSunshine's picture

Ben Bernanke's "Virtuously Circular" macroeconomic policy thesis, which is perhaps the most groundbreaking & important work done in the precise field of economics in the last 1,000 years, depends on it!

Dr. Engali's picture

On another looks like the brown shirts got 50 million for new uniforms.



TSA Sealed $50-Million Sequester-Eve Deal to Buy New Uniforms

knukles's picture

So they get to wear 'em at home during furlough.  Stay frosty, fellas.  Come'ere, Fido, time for another nut search.