Bank of America slashes S&P 500 target, sees stocks falling another 5% by year-end

Stocks will continue to struggle in the second half of 2022 as the U.S. economy falls into a recession, according to Bank of America. Strategist Savita Subramanian lowered her year-end target on the S & P 500 to 3,600 from 4,500 on Thursday, making her the most bearish among Wall Street strategists at top firms . The target represents a decline of 5.3% for S & P 500 from Wednesday's closing level of 3,801.78. The index is already down 20% year to date.

Our US Regime Indicator remains in Late Cycle, but has historically shifted to a Downturn phase ahead of US recessions," Subramanian wrote. "Our derivatives team sees higher downside risks to equities given the historically wide spread between rates and equity volatility, and believes equities are not adequately discounting a recession if we are already in one. Our advice for equity investors: stick with quality and cash flow yield," she added.

Gonna get under 3,000 sometime in 2023. WinterIsComing

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