Deutsche Bank raised thier S&P 500 target to 5,500 last week, reasoning (in brief):
- a strong earnings cycle, admits valuations appear to be "pretty full', but says they are not too highcompared with historical standard
- economic expansion, says this'll continue and that forecasters have underestimated economic growth for seven quarters
- easing price pressures, inflation mostly reflects factors like seasonality and the stickiness of measured rents
DB does not think the market is pricing in too much, saying:
- the risk to growth relative to the macroeconomic consensus looks to us to be on the upside
- and the risks to inflation we see as basically being to the downside
The bulls are raging on Wall Street
