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David Bianco CDS Hits All Time High Following His S&P Price Target Hike From 1,400 To 1,450

Tyler Durden's picture




 

Just when one thought Wall Street could not become more full retard, here comes David "Kermit" Bianco who, perfectly oblivious of the world ending one broke European country at a time, has just released the following: "S&P 500 2011 year-end target remains 1400, 12-month target raised to 1450 from 1400 12-month target raised on time value and conviction in 2012 EPS being ~$100 barring recession." Barring recession? Has this "strategist" even looked at a TV in the past three months, let alone exited the island of lunatic asylum that is Manhattan? But wait, the humor continues, although we are 100% confident this joke of a snake oil salesman will be on CNBC any minute. As a reminder, Bianco had an S&P price target of 1650 until October 6, 2008, or after the Lehman bankruptcy. He would end up being off by only well over 100%.

Key views and expectations:

  • No US recession – but balance sheet repair and government policy angst weigh on GDP growth for extended period
  • Global economy stays healthy (4.5%) in 2012, despite weak US (2.3%) and European (1.4%) growth, thanks to Asia
  • In correction territory (under 1230), S&P 500 priced for a mild to avg. US recession. ~1200/~14x implies ~$85 2012 EPS
  • No Fed Funds rate hikes until 2014, 10yr Treasury yield 3% at 2011 end, 4% at 2012 end and below 5% until 2015
  • Oil prices stay high (WTI $85-100/bbl) but do not spike to new records – high commodity prices stimulate capex
  • US business spending on equipment and software to rise at healthy pace, which benefits Industrials and Technology
  • 2012 S&P EPS growth of 7% outpaces US GDP, led by S&P foreign (~40%) and business spending (~25%) exposures
  • The huge disconnect between PE ratios and interest rates will spur acquisitions, share repurchases and dividend hikes
  • We prefer high dividend growth stocks over high dividend yield stocks.  S&P 500 DPS estimates: 2011 $28, 2012 $38
  • Overweight sectors most foreign and B2B exposed, underweight sectors most consumer and govt. spending exposed
  • Discipline & courage earn gains – S&P 500 typically rallied 15%+ Sep-Jan when priced for a recession that didn’t come

For those who enjoy having their front lobe turn to mush, especially as Europe is once again in full meltdown mode, both radioactive and otherwise, the full paperweight is attached below.

Idiot Report

 

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Mon, 09/12/2011 - 08:44 | 1659085 King_of_simpletons
King_of_simpletons's picture

HA HA HA HA !

Mon, 09/12/2011 - 08:58 | 1659131 HarryWanqer
HarryWanqer's picture

This seems low to  me.

Mon, 09/12/2011 - 09:05 | 1659153 SheepDog-One
SheepDog-One's picture

Harry has 3 inch thick rose colored glasses compared to Kermits 2 inch thick version.

Mon, 09/12/2011 - 10:29 | 1659473 LowProfile
LowProfile's picture

Harry is a lampoon of TPTB troll plants, don't junk him into oblivion.

Mon, 09/12/2011 - 08:45 | 1659090 LawsofPhysics
LawsofPhysics's picture

Comic relief!!!! 

Mon, 09/12/2011 - 09:32 | 1659272 SteveNYC
SteveNYC's picture

BAML is firing like crazy, huge job-stick-save from Bianco!

Mon, 09/12/2011 - 08:46 | 1659094 SheepDog-One
SheepDog-One's picture

Kermit has pink unicorns flying out of his arse! 

Mon, 09/12/2011 - 08:51 | 1659114 Cdad
Cdad's picture

Pink unicorns?  Those are soooooo rare, dog.  Anyone flying on pink unicorn power shall be interviewed by the BlowHorn [CNBC], and quickly so.  That is a very special individual with a very unique vision of markets.

Mon, 09/12/2011 - 09:00 | 1659138 SheepDog-One
SheepDog-One's picture

I hear the pink unicorns crap piles of pure Hopium! Kermit should deliver a bunch free to CNBC this morning to get the party started.

Mon, 09/12/2011 - 09:11 | 1659175 Cdad
Cdad's picture

The fumes from the pink unicorn piles have now magically levitated ES by 12+ points....

Mon, 09/12/2011 - 09:56 | 1659329 krispkritter
krispkritter's picture

What's green and smells like pork?  Kermit's Wanger...

Mon, 09/12/2011 - 08:47 | 1659096 GeneMarchbanks
GeneMarchbanks's picture

' Bianco who, perfectly oblivious of the world ending one broke European country at a time, has just released the following: "S&P 500 2011 year-end target remains 1400, 12-month target raised to 1450 from 1400 12-month target raised on time value and conviction in 2012 EPS being ~$100 barring recession." '

Ummm the world doesn't matter, what are the charts saying!

Mon, 09/12/2011 - 08:47 | 1659097 f16hoser
f16hoser's picture

WTF? Whatever they're paying you biancy, it's way too much. Put the pom pom's down and walk away.

Mon, 09/12/2011 - 08:52 | 1659098 vast-dom
vast-dom's picture

I am persoally going to UPGRADE Bianco to full-on FUCKTARD and downgrade SP to 950 by THIS Thursday.

Mon, 09/12/2011 - 10:06 | 1659376 X.inf.capt
X.inf.capt's picture

LMAO

Mon, 09/12/2011 - 08:48 | 1659099 Sudden Debt
Sudden Debt's picture

This is called "Being the optimistic Jew in the Auchwitz showers"

 

Mon, 09/12/2011 - 09:04 | 1659148 Gandalf6900
Gandalf6900's picture

ouch

Mon, 09/12/2011 - 08:50 | 1659102 MFL8240
MFL8240's picture

Of course, the fucking con show will be with the US the country that produces nothing with all the growth while the rest of the world implodes.  Where the fuck does this shit end?  This is to prod the sheep throw more of their money so the gansters can get out of their last holdings.  S&P 1450?.... Maybe in 2030 and that is simply based upon inflation asjustments.  Fuckin Clown!

Mon, 09/12/2011 - 08:49 | 1659105 Irish66
Irish66's picture

French Finance Minister told him everything is fine

Mon, 09/12/2011 - 08:51 | 1659110 MFL8240
MFL8240's picture

And Greece will experience 5% GDP growth.

Mon, 09/12/2011 - 09:05 | 1659151 Gandalf6900
Gandalf6900's picture

5.21% to be exact

Mon, 09/12/2011 - 08:50 | 1659107 Global Hunter
Global Hunter's picture

nice touch with the name of the link to the report

Mon, 09/12/2011 - 08:51 | 1659111 Reform1776
Reform1776's picture

PUMPERS OF THE WORLD UNITE!

WONDER TWINS AND SUPER FRIEND STYLE!

 

Mon, 09/12/2011 - 08:51 | 1659113 oogs66
oogs66's picture

and he makes 7 figures for that?  maybe buffett can get his money back

Mon, 09/12/2011 - 08:53 | 1659117 Smithovsky
Smithovsky's picture

What an absolutely useless and worthless excuse for a human being.  The very sad thing is, his bonus/IQ ratio is probably through the roof.

Mon, 09/12/2011 - 08:55 | 1659121 Nascent_Variable
Nascent_Variable's picture

It's good to see that the impending economic disaster isn't affecting the heavy narcotics market on Wall Street.

Mon, 09/12/2011 - 08:58 | 1659132 Cone of Uncertainty
Cone of Uncertainty's picture

This fucktard is about as useful as Ed Yardeni.

Mon, 09/12/2011 - 09:00 | 1659137 Bob the Horse
Bob the Horse's picture

Actually he would have been off by 60%, not more than 100%.  Just to be pedantic.

Mon, 09/12/2011 - 09:04 | 1659146 SheepDog-One
SheepDog-One's picture

In 2008 his 1650 S&P call was met by the S&P at 666, well over 100% off. And he called that AFTER Lehman....obviously this guy views everything thru 2 inch thick rose colored glasses.

Mon, 09/12/2011 - 09:02 | 1659142 buzzsaw99
buzzsaw99's picture

benny blanco from the bronx:

http://www.youtube.com/watch?v=589cMH_NE7E

Mon, 09/12/2011 - 09:05 | 1659150 wang (not verified)
wang's picture

If Jim Bianco (Bianco Research) were smart (and he is)

he would change his name or file an injunction against his namesake David

Mon, 09/12/2011 - 09:05 | 1659152 catladdy
catladdy's picture

timely release as ES enjoys nice 10 pt + rally off this morning low.

Can you say short squeezing the gonads!

Mon, 09/12/2011 - 09:08 | 1659162 SheepDog-One
SheepDog-One's picture

Review Rule 48.

Mon, 09/12/2011 - 09:18 | 1659208 catladdy
catladdy's picture

Right!

Rally was due to happen. Expected it earlier as I was buying back my shorts ealier this am

Mon, 09/12/2011 - 09:08 | 1659160 overmedicatedun...
overmedicatedundersexed's picture

he got a call from liesmann this AM ..just cought tha lies mann saying on CNBC this AM ..hey 2 trillion stimulus is great idea..santelli rolling eyes

Mon, 09/12/2011 - 09:10 | 1659170 prains
prains's picture

Low hanging fruit

Mon, 09/12/2011 - 09:11 | 1659174 monopoly
monopoly's picture

Not even worth commenting on. Could you imagine being with this brokerage firm and know that the commissions you pay are going to people like this. Glad I do not deal with any of these squids.

And I look at all the headlines today, Greece, France, Euro, contagion, and just smile. We all knew about this Saturday and Sunday here at Zero Hedge. No surprises for us yet the people are going bonkers.

Gold still in its triangle, going to sweep another miner into my basket on this pull-back. These are gifts guys IMHO> I have taking advantage of this many times. Anyone think the run in miners is over and it is time to put it all in NFLX? I mean it is down over 100 bucks  from the high just a few weeks ago. What a bargain. Nah, think I will wait a little longer. Maybe at 85 or so might pick it up. :) jk. Have no interest in generic stocks.

Mon, 09/12/2011 - 09:14 | 1659186 lizzy36
lizzy36's picture

And that ladies and gentlemanis the type of genius being cultivated at BAC.

Even Cramer had some comment about this report "i struggle getting to his level" and this smartism "a credit crunch is BAD for earnings".

Well folks there you have it.

Mon, 09/12/2011 - 09:17 | 1659204 monopoly
monopoly's picture

Just remember guys, when Bernank starts chanting and twirling his beads, up we go. Treacherous market and tough to short at these oversold levels. Staying away from shorting. I do not day trade anyway. Not smart enough to catch the 45 minute pumps and dumps.

Mon, 09/12/2011 - 09:35 | 1659277 ww2vet
ww2vet's picture

market no where near oversold-weeks off low, 10-day a/d's barely neg!!

Mon, 09/12/2011 - 09:33 | 1659239 Silverhog
Silverhog's picture

He should buy lottery tickets with such optimism.

Mon, 09/12/2011 - 09:29 | 1659256 drivenZ
drivenZ's picture

 

"We expect the deficit debate to remain tumultuous through the end the year. We remind investors that given the large dollar figures being discussed the contentious nature of the debate is to be expected and should not be taken as a sign of dysfunction."

 

Don't worry everyone, the gov't is working perrr-fectly fine. the complete cluster-fuck of the last few months? this is normal. Pop a xanax and put a few market orders in.


 

Mon, 09/12/2011 - 09:33 | 1659274 TTaco
TTaco's picture

COME ON GUYS!! Don't You see it's a JOKE: One on the Analysts is JIM CAREY ... Hold on! No, it's Jill Carey : "HO MY F* GOD!" poor guys, they are associated with this clown.

Mon, 09/12/2011 - 09:49 | 1659308 island
island's picture

Hey, be grateful for Bianco and a few more like him.

We need a few buyers.

Mon, 09/12/2011 - 09:56 | 1659330 SmoothCoolSmoke
SmoothCoolSmoke's picture

He's betting it all on Ber-shankie and QE3.   Stranger things have happend.

Mon, 09/12/2011 - 10:19 | 1659420 XRAYD
XRAYD's picture

Nobel prize for best market forecast?

Mon, 09/12/2011 - 10:20 | 1659425 Fruffing
Fruffing's picture

The U.S. benchmark index may slump to 910, Mary Ann Bartels and Stephen Suttmeier, Bank of America’s New York-based technical market analysts, wrote in a report today

Awkward moments in the canteen

Mon, 09/12/2011 - 10:49 | 1659539 Bam_Man
Bam_Man's picture

Bianco = Merrill Lynch sell-side "research".

What do you expect? Truth & objectivity? LOL.

Tue, 09/13/2011 - 22:00 | 1665990 moxia19
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