There's A New Most Bullish Strategist On Wall Street
Today, that title has been seized by Canaccord's Tony Dwyer, who today cranked up his year end target to 1,760 from 1,650.
"We believe the combination of (1) fewer signs of systemic risk, (2) reduced policy valuation constraints and (3) better than expected economic and corporate profit trends should allow for continued valuation expansion," wrote Dwyer in a note to clients this morning. "We now expect investors to pay 16x our 2013 SPX operating EPS estimate of $110 vs. our prior target of 15x."
Dwyer believes we could see some pullbacks, but he thinks those would represent buying opportunities.
"In our view, the more important discussion should surround what to do with any weakness toward SPX 1500, rather than trying to trade it," he wrote. "The “what to do” is driven by our high conviction level in our bullish view driven by low core inflation and real interest rates, “sweet spot” fundamental data, upside surprise in EPS results and continuation of the already expanding market multiple."
The acknowledgment of expanding multiples have separated the strategist who have been write from those who have been wrong about this rally.