RBS's Bob Janjuah: Gold to 1,500, Euro/Dollar Parity, S&P 850 Fair Value, Treasuries Long Term Problem

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Bob Janjuah, RBS (Royal Bank of Scotland) Chief Market Strategist, was on Bloomberg TV (Youtube, Bloomberg.com) last week and gave his views on the S&P, technicals, EUR/USD (Euro-to-US Dollar), Treasury yields, inflation and gold. I posted links to some of his recent reports here but he pretty much covered everything in this video.

Below are highlights and the embedded video.

*S&P: "I think starting point, fair value for the S&P, based on a reasonable long term earnings trend, is 850." (he thinks the 2nd half of the year will be difficult).

*S&P Technicals: "If we can break through that (1180-1220 resistance) on a 2-3 day consecutive basis, 1320 is the next level.  If we can't break it we're back down at 1040 I think very quickly."

*Eurodollar: "I think the Euro is going to parity. Short-term I thought we'd have a stronger bounce."

Treasuries: "Ultimately, I think Fed policy is about creating inflation so long term, I think there’s a problem there."

*Gold: "I think we’re in an era of destruction and fear of money, I can easily see $1,500 an ounce this year."

*Treasury yields:  "Well if you multiply the money base many fold, think of a number, double it."