Get Up On Brian’s Level: Wall Street Has A New Biggest Bull

Listen, if you’re among the innumerable people who think we’re in for some risk asset fireworks in 2018, BMO’s Brian Belski thinks you’ve got another thing comin’, goddammit.

There’s a lot of chatter out there about stretched valuations and about how because this is already one of the longest running bull runs in market history, the odds are not in your favor if you’re betting on it to continue.

But that’s the kind of heresy that makes people think you might very well be a witch or some kind of publicity-seeking goblin that delights in other people’s financial misery.

And Brian isn’t a witch. Or a goblin. He’s a bull. A raging bull. And what you need to understand is that you don’t need multiple expansion to drive this fucker even further into the stratosphere.

“Given somewhat stretched valuation levels, it will be tougher for PE to expand meaningfully and earnings growth will be required for the next leg higher,” Belski wrote in a note last week, adding that “the good news is that current expectations suggest just that — earnings growth is expected to accelerate into double-digit territory for 2018.”

Do you know what that means for the S&P? Well, it means it’s going 14% higher is what that means:

GetUpOnMyLevel

See the difference? That makes Brian the biggest bull on the Street for anyone keeping track, which means Deutsche Bank’s Binky Chadha needs to up his target immediately to reclaim the throne.

And the kicker is that forecast doesn’t even include any benefits from tax reform, which Piper last week called a “free call option” on stocks.

So get up on Brian’s level or get left in the dust.

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