David Bianco Hired By Deutsche Bank To Complete Trinity Of Perma Bull

Tyler Durden's picture

It seems like it was only yesterday [technically it was September] that David Bianco "departed" his latest employee, Bank of America, where he landed following his "departure" from UBS back in 2007. Today, courtesy of Business Insider we learn that following an extended garden leave, or just a rather choppy job market, Bianco his finally found a new happy place: right in the cave of joy and happiness, also known as Deutsche Bank (aka the bank whose assets are about 80% of German GDP and which recently 'magically' recapitalized itself). Here he will be joined by the two other pillars of perspicacity - Binky Chadha and Joe LaVorgna. What to expect? Who knows - but lots of twisted humor is certainly in store. For the sake of simplicity we present some of the salient soundbites from Bianco and his colleagues over the past 5 years.


David Bianco:

November 7, 2007 - S&P at 1354: "Bianco, 32, wrote in a Nov. 9 research note that stocks are inexpensive and said the Fed will reduce its benchmark lending rate to 3.5 percent next year from 4.5 percent now. The central bank cut borrowing costs from 5.25 percent in the past two months to keep the housing slowdown and losses in bond markets spurred by mortgages to people with patchy credit from dragging the economy into recession. ``The market's priced for a U.S. recession,'' New York-based Bianco said during a conference call last week. "We don't think that's the case, and we believe the earnings are going to prove to be far more resilient than most people realize." [Bianco says] 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." Source - Bloomberg

March 18, 2008 - S&P at 1230: "[A Joseph Cohen's] year-end forecast for the S&P 500 at the beginning of 2008 was second only to the prediction of 1,700 from Bear Stearns Cos.'s Jonathan Golub, HSBC Holdings Plc's Kevin Gardiner and UBS AG's David Bianco. Source - Bloomberg

July 7, 2008 - S&P at 1,162: "The S&P 500's rebound "is going to be one of the greatest roars we've seen,'' Bianco said. "The market has way too many fears baked into the valuation right now. The fear out there is the earnings are about to collapse and interest rates are about to surge on inflationary fears. Neither is going to happen. "... "David Bianco at UBS says the index will increase at least 25 percent."... so make that 1450. Source - Bloomberg

October 6 -2008 - S&P at 980: "UBS strategist David Bianco cut his 12-month price target on the Standard and Poor's 500 Index .SPX to 1500 from 1650 on fears of a deeper recession from financial-system strains choking credit availability to the economy. Bianco also suspended his 2008 year-end target of 1550 on the index "owing to its proximity amidst extreme uncertainty and volatility." Bianco slashed his 2008 earnings outlook for the index to $74 a share from $80 a share on increased financial asset write-downs and difficult consumer and other macroeconomic conditions in the second half of the year. But he added that the S&P 500 index is significantly oversold and appreciation from current levels is likely by early next year even with greater-than-normal investor risk aversion." Source - Reuters

December 3, 2008 - S&P at 816: "Global stocks will withstand a “full-blown” recession and surge in 2009 as cheap valuations and efforts by governments to restore confidence in the financial system lure investors back to equities, UBS AG said. The Standard & Poor’s 500 Index, which tumbled 42 percent to 848.81 this year, may rally 53 percent to 1,300 by the end of 2009, David Bianco wrote in a note dated yesterday. The New York-based strategist, who a year ago predicted a 2008 advance of 16 percent for the S&P 500, is now forecasting a gain that would exceed the index’s best annual performance on record." Source - Bloomberg

July 7, 2010 - S&P at 1028: "Merrill Lynch strategist David Bianco is doing his best imitation of a Civil War admiral in the face of increasingly treacherous U.S. economic waters: Damn the torpedoes, full steam ahead! Despite the decision by his own firm's economists to slash their 2011 forecast for U.S. gross domestic product growth to 2.6 per cent from 3.3 per cent, Mr. Bianco said he is sticking with his S&P 500 earnings-per-share target of $88 for next year - representing growth of 10 per cent over his 2010 forecast, and almost 40 per cent above the S&P 500's actual earnings in 2009.  Mr. Bianco also held firm on his 12-month price target of 1,350 for the S&P 500 - almost 30 per cent above current levels." S&P closed at 1250 and only following the launch of QE2. Source - Globe and Mail

September 12, 2011 S&P at 1,153: "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." 2011 closes at 1250 only after ECB expands balance sheet by €600 billion Source: Zero Hedge

David Bianco is fired on September 14, 2011 - Source - Zero Hedge


And some soundbites from his other colleagues.

Binky Chadha:

December 11, 2006 - S&P at 1416: S&P at 1540 "The year ending December 31, 2007 will close at 1540". S&P closes year at 1346 - Source

July 7, 2008 - S&P at 1,162: "Binky Chadha, Deutsche Bank's New York-based chief strategist, says the S&P 500 will end the year at 1,650, up 29 percent from June 30." He was off by juuuuust this much. Source - Bloomberg

December 14, 2010 - S&P at 1,215: "The strategic and tactical cases for US equities should come together to generate strong market returns in 2011. The S&P 500 YE 2011 target remains unchanged at 1550" S&P closes at 1250. Source - Zero Hedge


As for Joe LaVorgna, the below chart comparison of Joe's track record with that of Groundhog Phil says it all (courtesy of John Lohman):


To summarize it all, we use Peter Sorrentino's famous remark: "A monkey with an abacus is probably better at the end of the day"

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
slaughterer's picture

Anybody who does not think that people like Lavorgna or Bianco or Stolper do not read ZH--and take some of Tyler's attacks personally in a hysterical acting out and/or a vindictive need to prove Tyler wrong--are perhaps underestimating how important ZH has become in the lives of the industry.  

falak pema's picture

as important as a bonus? or a kick in the ass? How about a bit of both. It is a roller coaster industry, so we have to keep all sqaures covered!

Harlequin001's picture

Expand credit, stock markets rise. That's all the research you need...

or should I say, for 25 years it's all the research you needed...

Timing the transition to a new gold standard, well that's a bit tougher, and requires a tad more brains...

imaginalis's picture

I'm not sure these guys take the attacks like that. They may well feel quite a bit of self congratulation being able to command such high salaries and lofty positions while being thick as pigshit about the value of stocks.

slaughterer's picture

All three of the guys I mentioned above want to be "correct" in their calls so that they can command even higher salaries and get promoted.  Tyler is around to remind them how wrong they have been.  

Wakanda's picture

Long twisted humor.

battle axe's picture

Wait, you mean that he does not know what he is talking about like every other "economist" on wall street? I am shocked!

Cognitive Dissonance's picture

"Here he will be joined by the two other pillars of perspicacity - Binky Chadha and Joe LaVorgna."

Finally.....the three stooges are back together again. Bliss!

Don Birnam's picture

Deutche's assemblage of Wall Street's finest evaluative and mathematical talent is now complete. Deutsche Bank, with this one action, has placed itself tree-tops taller than its peer group, with respect to both top-down and bottom-up analysis. The result of this agglomeration of financial intellect will generate results for the client base which will be nothing short of spectacular.

Sheer intuitive brilliance -- all in one room. How do I become a client ?


Benedict Farse's picture

Monkey with an Abbot's Arse could do better.

WALLST8MY8BALL's picture

What would David Bianco do
If he was here right now,
He'd make a plan
And he'd follow through,
That's what David Bianco 'd do.

When David Bianco was at B of A
Talking about  gold,
He said it’s not for balanced accounts
While wearing a blind fold.

When David Bianco was in the alps,
Fighting Market bears,
He used his magical fire breath,
And saved the $EU pair!

So what would David Bianco do
If he were here today,
I'm sure he'd kick an ass or two,
That's what David Bianco’d do Hey.

When David Bianco travelled through time
To the year 3010,
He fought the evil robot kings
and saved the human race again

And when David Bianco went to the mountains of Afganistan
He beat up Osama bin Laden and the entire Taliban!

lasvegaspersona's picture


apologies to Trey and Matt would be appropriate



and of course Brian Boitano

Manthong's picture

The little rodent with brushed back hair is kind of cute.

slaughterer's picture

That "cute" little rodent is Bill Gross's successor.

Dr. Engali's picture

It's too bad there won't be a such thing as a bond fund when that time comes around. The dollar ponzi system will have imploded by then.

Zola's picture

on 150k euro +++

Dr. Engali's picture

It would be fun to see Lavoargna as Bubba's little bitch in prison.


You're my prison bitch......




LongSoupLine's picture



Circle (of) Jerks!

scatterbrains's picture

good grief I'm going crazy.. I should not be laughing this hard.. calm myself..calm.. there now,  I'll go make some tea.

JW n FL's picture



Total Number of Observations 144

Total Number of Success 74

Accuracy Win Rate 51%

So? he has a 50 / 50 chance of being right or wrong.. and he is right 51% of the time?

So the 1% pushes him over the edge?

and how would someone serious who demands 100% cash on cash or better make money with this 1%er?

Never mind.. he is handling the free money from the Government(s).. the real question to ask is how many trades can he complete in which the bank can collect a fee!

thats the ticket!



falak pema's picture

Is O'bammy thumbing his nose at the gold/silver bugs when he does this?


OBAMA: Let's Save Money By Making Coins With Cheaper Metals Joe Weisenthal | 3 minutes ago

Read more: http://www.businessinsider.com/obama-lets-save-money-by-making-coins-with-cheaper-metals-2012-2#ixzz1mHXVQJne


scatterbrains's picture

If ZH had a hall of fame this piece would be very near the top in my book..   a fucking gopher! 



ljag's picture

What's an S&P anyway? Do you paste 'em in those little books? Nevermind. I'll just come right out and admit I know nothing about the subject yet I am strangely compelled to read ZH daily and laugh out loud to make up for all those yrs I couldn't. Thanks Tyler!

lizzy36's picture

WS only works when markets are going up. Long only.

Problem is "Wolume". Investors aren't buying into the current myth. Traders will trade, pro's wil dance, but OPM? 

I am also curious about how long trio's like this last. Seems they have next to NO value added, institutions ignore them, and retail ain't really buying.If research is a cost center of IB's one wonders how long those same IB's can afford "strategists" (unless Lavorgna is cutting DB in on the $200 he collects everytime he appears on cnbc as a "contributor")

slewie the pi-rat's picture

i've often wondered if i could handle an abacus...

but i always end up putting on music and making noise with it!

i got the abacus blues, BiCheZ!

rational's picture

S&P 500 now at 1350... what was the Durden call for Q1 2012?