JPMorgan's Thomas Lee Raises 2011 S&P Target to 1,475 (Bloomberg)

Source: BloombergTV
JPMorgan's Chief U.S. Equity Strategist, Thomas Lee, raised his year-end (2011) target on the S&P to $1,475 from 1,425, and his 2012 EPS estimate to $105 from $102 (14.04 multiple = 1,475). During his interview on Bloomberg TV on May 2, 2011 (see below), Lee said to watch stocks relative to "tail assets" (ex. gold and oil) to prove that the move is real. He believes the death of Osama Bin Laden will help this correlation, since gold and oil are used as terrorism insurance (terror premium in the price).

"We should see relative performance of stocks versus what we call tail assets. In other words, if stocks begin to outperform gold; stocks versus oil; we know investors are starting to believe this."

On Treasury yields moving lower (10-year went from 3.77% to almost 3.25%).

"It just shows you the Treasury market is a lot more than just about QE, *because I think everyone was thinking Treasuries (yields?) would back up because of QE (*double check this). But, you know what? Maybe a lot of it is discounted. It is really hard to tell what the 10-year is telling us. I would just tell you, I'm worried if the 10-year is at 4.5 to 5.0%; that would really destroy the case for stocks."

Mr. Lee believes we are in a structural bull market. I thought we were in a cyclical bull market?

SPX 1475 2011 Target, 1,250 Low (FreeStockCharts)
"It's been a very tough market. Remember people have been kind of bearish on this; they've been wanting to sell every rally here and it's been hard to embrace this as a secular bull market" (does this mean the Dow won't hit Charles Nenner's target of 5,000 in 2013?)

A few weeks ago Lee said the S&P will not breach the 1,250 low this year. I embedded that video as well. If you look at the chart to your left, 1,475 looks possible if the S&P were to rise to the vertex point of the 2-year wedge. By the way, ever since the market bottomed in March 2009, Tom Lee's S&P targets have been spot on.

JP Morgan's Tom Lee: S&P Target 1,300, 14.5x 2011 $90 Earnings By Year End - June 15, 2010

JP Morgan's Thomas Lee on 2010: S&P Will Hit 1300, Cyclicals.. - December 16, 2009

JP Morgan's Lee Sees Recovery, S&P Target 1,100" - June 17, 2009

JPMorgan's Lee Interview on Stock Market Outlook, May 2, 2011 (

JPMorgan's Lee Interview on Stock Market Outlook, March 28, 2011 (

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