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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SheepDog-One's picture

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

LowProfile's picture

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

LawsofPhysics's picture

Comic relief!!!! 

SteveNYC's picture

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

SheepDog-One's picture

Kermit has pink unicorns flying out of his arse! 

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.

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.

Cdad's picture

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

krispkritter's picture

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

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!

f16hoser's picture

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

vast-dom's picture

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

Sudden Debt's picture

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


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!

Irish66's picture

French Finance Minister told him everything is fine

MFL8240's picture

And Greece will experience 5% GDP growth.

Global Hunter's picture

nice touch with the name of the link to the report

Reform1776's picture




oogs66's picture

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

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.

Nascent_Variable's picture

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

Cone of Uncertainty's picture

This fucktard is about as useful as Ed Yardeni.

Bob the Horse's picture

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

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.

wang's picture
wang (not verified) Sep 12, 2011 8:05 AM

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

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

catladdy's picture

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

Can you say short squeezing the gonads!

catladdy's picture


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

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

prains's picture

Low hanging fruit

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.

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.

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.

ww2vet's picture

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

Silverhog's picture

He should buy lottery tickets with such optimism.

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.


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.

island's picture

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

We need a few buyers.

SmoothCoolSmoke's picture

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

XRAYD's picture

Nobel prize for best market forecast?

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

Bam_Man's picture

Bianco = Merrill Lynch sell-side "research".

What do you expect? Truth & objectivity? LOL.