(Yahoo!Finance) - The stock market has had a stellar run in 2023, and the equity strategy team at Bank of America expects another strong year in 2024 will send the S&P 500 (^GSPC) to a record high of 5,000.
In a note to clients published Tuesday, Savita Subramanian and her team at Bank of America argued the coming year will be a "stock picker's paradise" as markets move past the "maximum macro uncertainty" investors faced this year.
"The market has absorbed significant geopolitical shocks already and the good news is we're talking about the bad news," the firm wrote.
"Macro signals are muddled, but idiosyncratic alpha increased this year. We're bullish not because we expect the Fed to cut, but because of what the Fed has accomplished. Companies have adapted (as they are wont to do) to higher rates and inflation."
The firm's forecasted year-end target for the S&P 500 implies the benchmark index will rise about 10% from current levels. The firm had a year-end price target for 2023 of 4,600 on the S&P 500.
By Josh Schafer · Reporter
