The new date is Nov 23, 2021.
Bank of America predicts a negative year for stocks in 2022, saying the current environment resembles a late-cycle bubble similar to the dotcom boom in 2000.
The market faces a growing number of challenges and Bank of America expects them to cause a bumpy stock market in 2022.
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There are many similarities between 1999 and 2000 according to a recent note by analysts led by the head of U.S. equity and quantitative strategy at Bank of America.
The current market set-up is very similar to the one just before the internet tech bubble burst in the late 1990s, when stocks fell into a bear market.
Bank of America said that some of the signs in the market are worse than in 2001, and that investors are starting to accept the unthinkable.
The Wall Street firm predicts a negative year for stocks because of a number of worrying signs in the markets.
Bank of America set a price target of 4,600 for the S&P 500 next year, which is 2% lower than Monday's closing price.
Morgan Stanley has a price target for the S&P 500 that is lower than Bank of America's, but other major banks such as Goldman, JP Morgan and Wells Fargo all expect the stock market to rise in the future.
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Bank of America strategists said that they began their career in the late 1990s, which felt similar to the Fed hike, valuations, IPOs, negative equity risk premia and acceptance of the outrageous.
Bank of America says that the challenges facing markets may be worse than the tech bubble of the late 1990s. The Federal Reserve is expected to raise interest rates for the first time since the outbreak of the H1N1 flu, with markets already betting on several rate hikes in 2022, according to the CME FedWatch Tool. Bank of America said that the rate hikes will happen in a market where valuations are already high. More companies with negative earnings have gone public than during the dotcom bubble, according to the bank.
The key background is.
The Federal Reserve has not raised interest rates since the outbreak of the swine flu. The stock market rebounded quickly from its sell-off in March of 2020. The S&P 500 is up over 26% this year, but markets could be volatile in the future due to rising fears about inflation, supply chain issues and a reversal of the Federal Reserve's monetary policy.
The stock market jumped after Biden nominated Powell to lead the Federal Reserve.
The Federal Reserve will end the Stimulus by June.
Here are Morgan Stanley's top stock picks.
