Credit Suisse Trims S&P Target: Another Sell in May and Go Away! (CS, SPY, PPH)

Credit Suisse Group (NYSE: CS) is sort of taking the “Sell in May and go away!” approach.  At least that is how it sounds, even if the overall call is still for equities to rise between now and the end of 2012.  The macro-call is a reduction in the S&P 500 (AMEX: SPY) year-end target down to 1,450 from 1,470.  The report basically notes that the chances of the Greek exit of the Euro is now at 15% rather than 5% probability.  On an outright Euro break-up, Credit Suisse now sees a 10% chance of this happening rather than a 5% chance. The global equity strategy call notes that France now faces structural challenges.

Today’s quote is hard to take as positive considering that it says that the S&P could run down to 1,000 into a breakup of the Euro.  The crux of the report noted, “Although most risk indicators are neutral (sentiment, risk appetite, insider buying) we think on a 3- to 12-month view equities still have the best risk-reward trade-off among the major asset classes – we stay overweight.”

As far as sectors, Credit Suisse calls on the ‘dollar earners’ and is overweight drugs and the key pharma ETF is Market Vectors Pharmaceutical ETF (AMEX: PPH) but that ETF was not mentioned in the Credit Suisse call.

JON C. OGG