Markets will rally before year end when Washington lawmakers strike a deal to avoid the so-called "fiscal cliff," U.S. Trust President Keith Banks said Friday on CNBC.
"We're expecting what we call a 'baby grand bargain,' i.e., a framework that allows them to press the pause button and do the real work next year without all the spending cuts and tax increases, throwing things off-kilter," he said.
"I think the economy improves next year. We think emerging economies improve, as well, so global growth grows."
But the real catalyst, Banks said on "Fast Money," was a budget deal that was good enough to restore confidence that the U.S. economy is on track to resolve some of its biggest challenges.
"You just can't get all that hard work done between now and the end of the year," he said. "But we think that you can get enough done and enough of an agreement, again, hit the pause button, then get down to the hard work."
Banks said that he estimated corporate earnings around $108 per share, which would take the current 14-times multiple up toward 14.5 or 15.
Banks has a 2013 target of 1,600 for the S&P 500 .
Written by Bruno J. Navarro, CNBC.com Producer.
Trader disclosure: On Nov. 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long AAPL; Jon Najarian is long JPM; Jon Najarian is long FB; Jon Najarian is long GOOG; Jon Najarian is long TJX; Jon Najarian is long JCP; Jon Najarian is long EXPE; Jon Najarian is long MA; Jon Najarian is long YUM; Jon Najarian is long RGR; Jon Najarian is long GT; Jon Najarian is long STSI; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Pete Najarian is long AAPL; Pete Najarian is long JPM; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long TCK; Pete Najarian is long MRK; Pete Najarian is long NOK; Pete Najarian is long LLY; Pete Najarian is long CE; Pete Najarian is long RHT CALLS; Pete Najarian is long VMW CALLS; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long YUM; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Steve Weiss is short JCP; Steve Weiss is long M; Steve Weiss is long T;
For Michael Pachter
FB/ZNGA:
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