Get ready for the sequel to the summer rally--a year-long, full-blown bull market.

David Bianco, chief U.S. equity strategist at Bank of America (BAC - news - people ) Merrill Lynch says the S&P 500 will hit 1,200 in the next 12 months, up another 20% from its current level to 17 times earnings for next year and 15 times earnings for 2011. Leading sectors will be financials, energy, technology and consumer staples, though there will be some risky opportunities in health care and utilities, say Bianco and his team.

"The valuation thesis is that 2009 just doesn't matter," says Bianco. "It was a horrendous recession. It's over. What matters is how earnings recover in 2010 and 2011."

The optimistic forecast calls for growth in corporate earnings to outpace the recovery in the broader economy. Unemployment will max out at 10.25% in mid-2010, and there won't be a notable amount of good jobs created until months after that. As was seen so far in 2009, increased productivity from America's remaining workforce will continue to drive earnings per share.

Any views on how this will help us?

Thanks Again for all the leaders of this forum

Al