“The S&P 500 could hit 2,500 within the next 18 months to two years” – this according to Stephen Auth, chief investment officer, equities at Federated Investors (Auth oversees a staff that runs about $50 billion in assets).

  • “Market valuations depend on growth, bond rates and perceptions of risk, and all three of those are going in the direction that actually expands the price/earnings multiple”
  • “At the same time, earnings are expanding, and that’s a recipe for another leg up in the market”

He cites

  • Improving trend in the labor market
  • Growth in the underlying private economy

He said he expects the energy sector to create a “manufacturing renaissance” because of lower costs.

More detail at Reuters report