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Tuesday, November 23, 2021 3:07:50 PM
Bank of America Sets Target for S&P 500 at 4,600 for 2022
By: TheStreet | November 23, 2021
• 'There are too many similarities between today and 1999/2000 to ignore,' Bank of America strategists say. They set a 4,600 target for the S&P 500.
The stock market’s drop the past two days may be a harbinger of a stall to come, say Bank of America strategists led by Savita Subramanian, head of U.S. equity and quantitative strategy.
They have a target of 4,600 for the S&P 500 next year, which represents a 1.3% decline from the current level of 4,660. The index has soared 24% year to date.
“There are too many similarities between today and 1999/2000 to ignore,” the strategists wrote in a report cited by CNBC. They were referring to the dot.com stock bubble of that era.
The bearish factors now include negative real interest rates, exploding inflation, manic initial-public-offering activity and liquidity risks in the world’s largest asset classes, such as U.S. Treasury securities and China real estate, BofA said.
U.S. consumer prices soared 6.2% in the 12 months through October, the sharpest inflation in almost 30 years.
Meanwhile, supply-chain disruption is starting to wane, says JPMorgan Chase. Among the stocks that will benefit are PepsiCo (PEP), Caterpillar (CAT), Schlumberger (SLB) and FedEx (FDX).
“Global supply chain pressures are easing — if this persists, the S&P 500 should continue to deliver strong revenue growth and record margins,” JPMorgan analysts, led by Chief U.S. Equity Strategist Dubravko Lakos-Bujas, wrote in a commentary.
“S&P 500 companies delivered much stronger-than-expected results [for earnings in the third quarter], … and some key companies gave an encouraging outlook on supply chains.
“Our view all along has been that supply and labor shortages would be temporary and normalize with a decline in Covid-19.”
Read Full Story »»»
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By: TheStreet | November 23, 2021
• 'There are too many similarities between today and 1999/2000 to ignore,' Bank of America strategists say. They set a 4,600 target for the S&P 500.
The stock market’s drop the past two days may be a harbinger of a stall to come, say Bank of America strategists led by Savita Subramanian, head of U.S. equity and quantitative strategy.
They have a target of 4,600 for the S&P 500 next year, which represents a 1.3% decline from the current level of 4,660. The index has soared 24% year to date.
“There are too many similarities between today and 1999/2000 to ignore,” the strategists wrote in a report cited by CNBC. They were referring to the dot.com stock bubble of that era.
The bearish factors now include negative real interest rates, exploding inflation, manic initial-public-offering activity and liquidity risks in the world’s largest asset classes, such as U.S. Treasury securities and China real estate, BofA said.
U.S. consumer prices soared 6.2% in the 12 months through October, the sharpest inflation in almost 30 years.
Meanwhile, supply-chain disruption is starting to wane, says JPMorgan Chase. Among the stocks that will benefit are PepsiCo (PEP), Caterpillar (CAT), Schlumberger (SLB) and FedEx (FDX).
“Global supply chain pressures are easing — if this persists, the S&P 500 should continue to deliver strong revenue growth and record margins,” JPMorgan analysts, led by Chief U.S. Equity Strategist Dubravko Lakos-Bujas, wrote in a commentary.
“S&P 500 companies delivered much stronger-than-expected results [for earnings in the third quarter], … and some key companies gave an encouraging outlook on supply chains.
“Our view all along has been that supply and labor shortages would be temporary and normalize with a decline in Covid-19.”
Read Full Story »»»
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