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SocGen’s Kabra Dethrones Subramanian As Wall Street’s Biggest Bull
Move over, Savita.
For nearly a month, BofA's 5,400 year-end target for the S&P counted as the most optimistic around. No longer. Savita Subramanian's three-week reign as the most bullish strategist on Wall Street is over. That title now belongs, however briefly, to SocGen's Manish Kabra, who this week lifted his target to 5,500.
Back in September, Kabra said the world's benchmark risk asset par excellence might rally to 4,750 by the end of 2023, only to sell off sharply in Q2 of this year
Just looking back at some notes, but in an HR dated 6/21/23, it was noted that SocGen (not sure who) was raising its 2023 target to 4300 (with the market at 4366), but saw the market revisiting 3800 in 1H2024 on credit and recession risks (neither of which has materialized). At that time, SocGen also cited (a now familiar) 5500 target as the potential peak in the event of an AI bubble (or Fed cuts). So with Fed cuts still pending, does this confirm the AI bubble?
Jury’s still out for me as I’ve already declared a mistrial, but math says that in 9 months’ time, SocGen has raised its 1H2024 target by over 40% to 5350. That makes me wonder what SocGen’s new potential peak in the event that an AI bubble or Fed cuts actually materializes. Using last year’s info, and math again, 5500/4300 * 5500 = 7,000 anyone? By then, Mike Wilson might well be discovering a strong preference for the tedium of taxidermy over the never-ending thrills of the casino.
What would Albert Edwards say?