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You Gotta Buy Any Dip: FOMO Calls Are Back, But Not Everyone Is Excited
You gotta buy the dip.
That's the message from Canaccord's Tony Dwyer, who lifted his 12- to 18-month price target on the S&P to 3,300, and upped his EPS estimate for next year to $165 from $150.
This comes as market participants seem reluctant to take any bold, definitive strides in either direction after coming to a fork in the road following the bounce off the March panic lows.
Apparently, we're supposed to be emboldened by the similarity between the 10-week rate of change in 2009 an
Dwyer missed the rally and kept saying to wait for the retest that never came. He gave up late and is now throwing his hat back in the ring. You are right on his 2021 S&P earning call, it’s just a guesstimate but me thinks this number will come lower than that as the effects of the virus will prove longer lasting than what the number crunchers assume.
I agree with you regarding the probable direction of 2021 earnings. But I also believe that TINA 2.0 will be ferocious (even more so than her older sister). So P/E’s are likely to be “higher for longer”. 20 might be the new 15…?
20 new 15…..scary probably true….
The 20 mult assumes earnings come through in 2021. A bigger assumption than many will admit. People will likely be surprised by the lack of rev growth and margin pressure. Int rates and taxes combined with buybacks will NOT be the tailwind like the past 10 years.
EPS growth will have to be “earned” via rev growth and cost control. I am not so sanguine.