How are they looking?
According to Raymond James strategist Jeff Saut, everything's pointing higher.
He writes in his note today:
Now that the "crisis" is in the rear view mirror, the equity markets should refocus on earnings, economics and the Federal Reserve; and here the story is pretty good. S&P's bottom up operating earnings estimate for the SPX is currently $107.58 leaving the SPX's PE ratio at almost 16. Next year's estimate is $121.66. If the SPX continues to trade at that PE multiple, it renders a price target of 1946. As far as economics, things appear to be getting better. In 2014 I believe GDP growth will finally accelerate to 3% driven by a capital expenditure cycle because companies like GM are running their plants flat out 24/7 and the equipment is wearing out. Finally, with Janet Yellen at the helm of the Fed, it should be steady as you go. That implies no tapering and plenty of liquidity. To the underinvested -- and underperforming -- investor, this trifecta is a nightmare.
For a similarly bullish argument, check out this recent post titled "Rocket Fuel" from Josh Brown.