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Stocks are cheap and could rally 32 percent next year — here’s the chart that shows why

October 5, 2017

Via: CNBC
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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.”

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