Bank of America Bullish on Stocks, Raises S&P 500 Target

Bank of America's head of US equity & quantitative strategy, Savita Subramanian, has raised the year-end target for the S&P 500 to 4,600, reflecting about 3% upside from current levels. The bank's research team no longer sees a recession for the US economy, indicating that markets are in the recovery phase. Bank of America believes that the equal-weighted S&P 500 will outperform the standard index, and that opportunities lie in companies that haven't experienced the same run-up as tech stocks. The bank's bullish outlook is supported by historical data showing that when strategists predict a decline in the S&P 500, the index tends to perform better than expected.