Tags: biggs | stocks | bull

Biggs: S&P Will Hit 1,200

By    |   Monday, 31 Aug 2009 12:29 PM

After calling this year's rally since March, Barton Biggs is still onboard. He sees 1,200 for the S&P as perfectly reasonable.

That’s up another 18 percent from current levels.

"The world economy and the U.S. economy are clearly emerging from this recession and the pace of acceleration is not totally clear yet, but I suspect it will be better than the consensus expects,” Biggs told Bloomberg.

“It's going to be more of a V."

Boggs thinks equity markets are trailing both reality and the financial conditions index, which is back to pre-Lehman levels. Since the pre-Lehman S&P was around 1,200 then, Biggs figures that’s where it’s headed for now.

“Where it goes from there is another question," Biggs says.

American and international companies, “have done a remarkable job of cutting costs and reducing overhead,” Biggs notes.

“As a result, it is beginning to look like the sustainable ROE for the S&P is 14.5 to 15 percent. And if that’s the case, the S&P should sell at 16 to 17 times earnings."

Biggs says we’re not headed for another super-secular bull market, though. He thinks it will be a long time before the S&P exceeds the 1,580 benchmark it hit in 2007.

Jeff Rubin, head of research at Birinyi Associates, also thinks this bull will stay a while.

"After a 50 percent move there is still a question of 'Is this a bull market?'" Rubin asked during a recent interview with Forbes.

"I continue to see skepticism concerning the market from Wall Street's strategists and commentators — this is a positive."

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
StreetTalk
After calling this year's rally since March, Barton Biggs is still onboard. He sees 1,200 for the S&P as perfectly reasonable.That’s up another 18 percent from current levels."The world economy and the U.S. economy are clearly emerging from this recession and the pace of...
biggs,stocks,bull
259
2009-29-31
Monday, 31 Aug 2009 12:29 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved