00:00Vinu Krishna of Barclays raising his 26 S&P target to 76.50 writing we are incrementally bullish on U
00:06.S. equities.
00:07The macro regime has turned messier but not hostile. Vinu joins us now for more. Vinu, good morning.
00:12Good morning.
00:13This is a really interesting note that you put out and thanks for making some time for us this morning.
00:17What a moment to raise your price target on the S&P 500. Where's that confidence coming from?
00:23You know, every year we assess our numbers towards the end of the first quarter when you have the full
00:29year, the previous year behind us, the fourth quarter earnings momentum.
00:33And that was a process. So while I fully recognize that the macro environment has become more fragile, but we
00:40are approaching it from a fundamental perspective.
00:42And the news over there is that earnings momentum has actually improved quite significantly.
00:46And we ended last year in a much better position than even what we thought. Earnings growth of over 14%.
00:53And this year we're expecting that to accelerate 15, 16%. Of course, the caveat is that the base case is
01:00that this war, which has come out of the blue, does get resolved in the next few months.
01:05If that goes out of the window, clearly we have a downside case where S&P we see going down
01:11to 5,900.
01:11S&P 500.
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