It’s a valuation call that catapults stocks by 32 percent.
Based on the latest calculations by PNC Asset Management’s Bill Stone, the S&P 500 could hit 3,368 in 2018. And he has a chart that proves it could happen.
“Part of it came to me watching Warren Buffett on CNBC [Tuesday] really talking about the fact that interest rates matter for valuing stocks,” said Stone on Wednesday’s “Trading Nation.” “All I did is look at what the consensus earnings were for 2018, take a look at where corporate bonds were yielding right now and then assume corporate bond yields move up about one percentage point.”
