Deutsche Bank strategist David Bianco told investors the market will rally into year end as the election and Federal Reserve rate hike risks are now priced into the market.
"[With] attractive S&P upside into year end, we change our tactical call [the next 5 percent move in the S&P 500] to 'up.' We think election risk is now better priced, which improves reward/risk," Bianco wrote in a note to clients Friday.
"We think S&P will finish this year at 2100-2200, closer to 2200 if Republicans hold the Senate," he said.
The strategist's 2,150 year-end target for the S&P 500 depends on a "balanced outcome" for the election that maintains the current split party control of the presidency, House of Representatives and Senate.