Nomura’s ‘Bob the Bear’ Turning Bull?

Is “Bob the Bear” turning bull? Appearing on Bloomberg T.V. on Wednesday, Bob Janjuah, global head of tactical asset allocation at Nomura International Plc, clarified his recent estimates that a rally in equities will extend into next year and the S&P 500 will hit 1,500 in the coming months.

“It’s a short-term tactical move reflecting the current monetary anarchy,” Janjuah said. “We believe we’ll see a 10% selloff of equities in Q2 and the S&P will be somewhere in the low 1,300s or high 1,200s.”

However, he added that a rally will occur in June or July as a result of some sort of Fed “twist,” a term that refers to the policy of selling hundreds of billions billion in short-term Treasuries in exchange for the same amount of longer-term bonds. The results from such a move could be felt into the election.

As for the longer-term outlook, Janjuah sounded much like his usual self.

“Global growth, including U.S. output, is not yet self-sustaining, and we’re headed for the fiscal cliff,” he said. “A longer-term secular call still holds and we have the S&P targeted for 800 with the Dow down as well.”