Call this the uber-bull case for stocks. Laszlo Birinyi is forecasting S&P 2,800 by September of 2013. Laszlo relies on historical patterns to make his predictions and obviously pays little attention to fundamentals. For those of us who still pay attention to fundamentals, Mr. Birinyi’s price target implies a P/E ratio on 2012 operating earnings estimates of more than 23X. The last time the S&P 500 traded at a forward operating earnings estimate of 23X was 1999. We all know how that turned out.
Jeremy Jones, CFA
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