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Da Vinci and 702 Rate Cuts Make BofA Bearish on Markets in 2018

'Salvator Mundi' by Leonardo da Vinci.
'Salvator Mundi' by Leonardo da Vinci.

Photographer: Drew Angerer/Getty Images 

The economy should surge next year. Markets, not so much.

That’s Bank of America Corp.’s outlook for 2018. Strategists at the bank expect the U.S. economy to grow 2.4 percent next year, up from 1.5 percent in 2016. Meanwhile they forecast that stocks will peak mid-year, and then start to head lower, while U.S. Treasury yields jump. It’s an assessment based in part on these striking numbers: