BofA Sees Glimmers of Hope as Pain Lingers for Stock Investors
- Bank sees 6% annual price return for S&P 500 over next decade
- Bear market ‘attractive opportunity’ for long-term investors
This article is for subscribers only.
Silver linings have begun to emerge in this year’s erratic stock market for long-term equity investors, according to Bank of America Corp. strategists led by Savita Subramanian.
The bank’s long-term valuation model points to an average annual price return of 6% for the S&P 500 Index over the next decade -- the highest level since May 2020. With 2% dividends, that would imply 8% in total returns, according to BofA. That marks an about-face for the bank. Its model heading into 2022 had forecast negative returns over the next 10 years.