A top stock-market strategist at Bank of America expects deeply liquid large-cap benchmark to climb roughly 3.5%.
A top stock-market strategist at Bank of America has raised her year-end target for the S&P 500 for the second time this year, calling for the deeply liquid large-cap benchmark to climb roughly 3.5%, to 4,600.
Her call came with one important caveat: She urged BofA’s clients to express their bullish view on stocks by buying the equal-weighted S&P 500 SPX, not the traditional cap-weighted index. Historically, the equal-weighted index typically outperforms during economic-recovery cycles, which Subramanian says the U.S. is now in.
The S&P 500 has risen 16.2% since the start of 2023, compared with a 4.1% gain for the equal-weighted index. However, Subramanian said, the more favorable valuation could help drive considerable outperformance for the equal-weighted index, with implied annualized returns beating the traditional S&P 500 by 5 percentage points over the next decade.
Subramanian previously raised her year-tend target to 4,300 from 4,000 back in May, just as stocks were breaking higher. A streak of stock-market weakness in August prompted some on Wall Street to reconsider lofty year-end targets after macro strategists played catch-up to the market by hiking targets earlier in the summer.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New Crypto IEO To Watch: Wall Street Memes Lists on Tier One Exchanges Sept 27The buzz around the new meme coin Wall Street Memes (WSM) is growing as its initial exchange offering (IEO) approaches on September 27. With promises of
Read more »
Wall Street Memes Presale Enters Final Week After Raising Over $25 MillionThe presale for Wall Street Memes ($WSM) has now just seven days left, leaving potential investors limited time to purchase tokens ahead of a potentially
Read more »
What the ‘mysterious shrinking’ of Wall Street’s fear gauge means for stocks, according to DataTrekWall Street’s so-called fear gauge is in a 'mysterious shrinking' pattern this year, a bullish signal for equities, according to DataTrek Research.
Read more »
Multiple people arrested in NYC at climate change protest on Wall StreetMultiple demonstrators were detained by police in New York City on Monday during a protest launched by activists against fossil fuel financiers on Wall Street.
Read more »
U.S. Steel outlook on UAW strike tops Wall Street viewU.S. Steel Corp. shares rose in the extended session Monday after the steel maker provided a forecast that both accounted for the auto workers strike, and...
Read more »
The Market-Beating Investment That’s Defying Wall Street SkepticsRising interest rates are boosting risky corporate-loan returns instead of hurting them.
Read more »