Bianco Bets on 2013 Growth, Earnings
Online Producer
Deutsche Bank's David Bianco said Monday that his bullish outlook for equities is based on world growth and stronger earnings in the S&P 500.
"We don't see signs of a great rotation in progress," he said, challenging the conventional wisdom. "Money is not abandoning the fixed-income funds. Money is still flowing into the fixed-income funds. It's true equities are beginning to get some flows, but my bullish thesis does not rest on a great rotation, inflows from individual investors into equities, it doesn't rest on 'QE forever.'"
On CNBC's "Fast Money," Bianco said that his outlook for equities was bullish.
"Our thesis rests on the world economy reaccelerating, and those earnings that are being generated by the S&P being deployed for dividend growth and strong share repurchase activity, which represents stronger inflows into the equity market than U.S. equity mutual funds ever did, even during the late 1990s.
"Our point is, the Fed is accommodative, and I think as long as we see fiscal responsibility, the Fed and the bond market will remain accommodative. Our thesis rests on world growth and the S&P's earnings grinding higher, despite fiscal drags in 2013."
Trader disclosure: On Jan. 28, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long IBM; Stephanie Link is long CAT; Stephanie Link is long SBUX; Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long AXP; Joe Terranova is long MS; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is long RIMM FEB $17 PUTS; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long GDX; Josh Brown is long MS; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long GOOG.
