That idiocy is job requirement for the bulk of sell-side "bankers" has long been known. That Bloomberg wishes to glorify it by making Wells Fargo's prediction of S&P 3700 by 2022 its "chart of the day", however, is absolutely ridiculous, and certainly qualifies for the WTF moment of the day.
From Bloomberg
Wells Fargo Advisors examined return for stocks over next 10 yrs when the start date is three years into a bull market and found in prior cycles that stocks have risen a median of 162%; implies S&P 500 can reach ~3700 by 2022.
[3]
- Firm examined five prior cycles starting in year 3 of bull market: Chief Equities Strategist Stuart Freeman in note yesterday
- 1973-1983, 1977-1987, 1983-1993, 1985-1995, 1993-2003
- 2006 cycle only 6 yrs old, posting 12% return
- 10-yr returns range from low of 57% for ’73-’83 cycle to high of 194% for ’85-’95 cycle
- "What we are suggesting is that there is much evidence the last 40-plus years of later-cycle returns following the first upleg in cyclical bull markets and periods of mid- cycle meandering"
The desperation to push Joe Sixpack back into stocks at all cost, and get him to buy the hot grenades held by Primary Dealers, and GETCO's FRBNY "PPT" account, reeks from miles away.
As for "predicting" 2022, here is ours - the two machines left trading stocks will send the S&P to at least one quadrillion. Unfortunately, stocks will be priced in something called a "fiat currency" which will be totally meaningless by 2022, as it will be devaluing by the same amount on a nano-hourly basis.