1200 on S&P in 12 Months?

The new CFA at Bank of America/ Merrill Lynch put out a report today that predicts a 17% gain in the S&P 500 from the current levels.  Some of the bullet points from the paper are:

• Slow GDP + low inflation + more saving = Shrink resistant P/E
• S&P 500 EPS recovery to outpace the US GDP recovery
• Overweight: Financials, Energy, Tech and Consumer Staples

Below is the paper for more detail… click for larger view