Bank of America issues a 'mea culpa' and boosts its S&P 500 forecast after missing out on the recent rally
Bank of America issues a 'mea culpa' and boosts its S&P 500 forecast after missing out on the recent rallyBank of America strategist Savita Subramanian on Monday raised her S&P 500 price target to 2,900 from 2,600 — and issued a"mea culpa" for missing the recent rally.
The bank isn't more bullish because of a number of potential downside risks it sees, including a potential second wave of COVID-19. Bank of America issued a"mea culpa" and hiked its target price for the S&P 500 after missing out on the market's most recent rally. Since March 23 lows, the S&P 500 has surged as much as 43%, the swiftest recovery from bear-market territory in history, fueled by"unprecedented fiscal and monetary stimulus" due to the coronavirus pandemic, according to the note. Tech stocks, or"secular growth/ stay at home" beneficiaries have led the rally, driven by the increased liquidity. MORGAN STANLEY: The stock market is entering a new phase of a playbook that's thrived in past recessions.
Currently, the S&P 500 is above Bank of America's target, suggesting that it's trading above fair value, according to the note.
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