Nomura's Bob Janjuah: S&P Moves 35% Lower, 90 EPS x 9 P/E = 810 (Video, SPX Chart)

S&P 500 Weekly Chart, w/ MACD (
Bob Janjuah, the co-head of cross-asset allocation strategy at Nomura International Plc, believes the S&P 500 moves 35% lower from here [9 P/E x 90 EPS = 810].  He was interviewed on BloombergTV on 12/2/2011, watch the interview below. To your right is a weekly chart of the S&P 500 going back to 2004 with trend lines. The MACD looks interesting. In addition, Janjuah believes...

*Overall equity markets will lose 20-25%;

*Greece could see a hard default in Q1 2012, which is not priced in the market;

*The risk of more countries defaulting is high, mentions Portugal;

*This will force ECB to be lender of last resort;

*U.S. sees no recession but growth below trend in 2012, between 1-1.25%;

*"China is not an unstoppable locomotive of global growth";

*Markets could see "much higher levels of volatility";

*Fiscal drag expected in Q1-Q2; sees no extensions for payroll tax holiday, unemployment benefits;

*Banking sector risks taking down governments;

*Likes non-financial large-cap corporates with strong balance sheets and the potential for special dividends and stock buybacks (due to ex-growth).

Source: Bloomberg (if unavailable the official video is at

Related Posts


HTML Comment Box is loading comments...