“In the first year of bulls, earnings don’t do well at all. They’re generally flat, they’re often down. But what really happens is multiples go way up,” he said.
“Let’s say earnings go to $220 or even $215 in the next year – but the multiple goes from the bear-market low of around 17 up to 22 or 23 times, it gets me to around 5,000,” on the S&P 500. he said. “And I don’t think that that’s all that unreasonable.”
