Bank of America strategists lowered their price target on the S&P 500 and predict the index will continue to fall this year. It doesn’t mean the sky is falling, but the bank’s newest worst-case scenario is pretty bleak.
The strategists lowered their year-end price target for the S&P 500 to 3600, below the index’s current level of just under 3800. The strategists are giving more weight to their worst-case scenario for the index—a 50% chance of the index falling to 3250. They raised the probability of a drop to the worst-case scenario because the risk of a recession is rising, which means corporate profits are at risk.