RBS's Bob Janjuah: Gold to 1,500, Euro/Dollar Parity, S&P 850 Fair Value, Treasuries Long Term Problem

Bob Janjuah, RBS (Royal Bank of Scotland) Chief Market Strategist, was on Bloomberg TV (Youtube, Bloomberg.com) last week and gave his views on the S&P, technicals, EUR/USD (Euro-to-US Dollar), Treasury yields, inflation and gold. I posted links to some of his recent reports here but he pretty much covered everything in this video.

Below are highlights and the embedded video.

*S&P: "I think starting point, fair value for the S&P, based on a reasonable long term earnings trend, is 850." (he thinks the 2nd half of the year will be difficult).

*S&P Technicals: "If we can break through that (1180-1220 resistance) on a 2-3 day consecutive basis, 1320 is the next level.  If we can't break it we're back down at 1040 I think very quickly."

*Eurodollar: "I think the Euro is going to parity. Short-term I thought we'd have a stronger bounce."

Treasuries: "Ultimately, I think Fed policy is about creating inflation so long term, I think there’s a problem there."

*Gold: "I think we’re in an era of destruction and fear of money, I can easily see $1,500 an ounce this year."

*Treasury yields:  "Well if you multiply the money base many fold, think of a number, double it."