Markets may move up 5% on Monday on Fiscal cliff agreement
Will be interesting. If it falls that i great opportunity to load up. The S&P500 trades at 13 PE vs 16.9 average and based on 105dollars EPS, should be at 1775. Considering 10 year T-bond is at 1.7% the PE could expand to 24 (as it was at prior similar rate periods). i.e. S&P could go up to 2450 but on extreme bullishness when the cliff clears and investors focus on the brightening US recovery.
As to Microsoft. It is the best among the lot with 62Billion cash, growing Office and Server business that makes up 80% of profits. Despite some popular press, CEOs of Dell and Lenovo have said Windows 8 demand is strong for touchscreens and in the Enterprise as well. Surface RT (according to Microsoft is beating their own estimates.. all of RT is additional gravy). WIndows phone as we know is growing 300% year over year. MSFT is a $34 to $40 stock