According to the Wall St Journal blog, J.P Morgan permabull Thomas Lee is at it again, issuing a note this morning offering eight reasons to be “contrarian” in 2012. And by contrarian, of course he means uber-bullish. What else would you expect? Lee has a well-documented history of offering extremely bullish calls. (He did have one bearish take a few years back. Of course that came during the grand market bottom in March 2009. Ouch.)
1. J.P. Morgan Fixed Income Strategists are constructive for 2012 on High Grade, High Yield, MBS, ABS, and CMBS. Given equities are the junior piece of the capital structure, this is positive for equities. Consensus is cautious about 2012.
2.The J.P. Morgan base case is for the Euro crisis to abate by 2H12 with Europe potentially exiting recession by mid-year. Historically, equities have bottomed 6- 9 months ahead of a return to growth.
3. Corporates are likely to ramp up total cash return by as much as $250bn in 2012. For the past five years, corporates have represented 97% of the incremental inflows into equities.
4. U.S. housing should see a further advance in its recovery in 2012, driven by expanding household formation rates. Vacancies are at five-year lows and other factors are also supportive....
But wait…wait..there’s more. Go to : http://blogs.wsj.com/marketbeat/2011/12/12/youd-better-sit-down-for-this-thomas-lee-sees-stocks-soaring-in-2012/
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