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The S&P 500 will fall 8% by the end of 2020, according to Bank of America's equity chief, who says a Joe Biden victory could tank stocks
Publisher:  business insider
Friday, 10 July 2020 05:44

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  • Bank of America's head of equity research predicts the S&P 500 index will fall to 2,900 by the end of the year, an 8% decline from current levels, MarketWatch said.
  • "I wouldn't paint myself as a bear, but the risks between here and year-end are completely to the downside," Savita Subramanaian said in a webinar conducted by the bank.
  • She pointed out that a Joe Biden victory in November could reverse market-friendly policies, and push stocks lower.
  • For investors favoring stocks that benefit from the coronavirus, she recommended leaning towards consumer staples, industrials, technology, and financials instead.
  • Visit Business Insider's homepage for more stories.

Some analysts have encouraged being bullish on stocks since mid-March.

Their reasons range from a relaxation in lockdown restrictions, zero cash rates, low bond yields, and a rapid healing of credit markets.

But Bank of America's head of equity research, Savita Subramanian, takes a contrarian view, according to a report by MarketWatch, that cited a webinar conducted by the bank this week.

Her interpretation is that the S&P-500 index will fall to 2,900 points, an 8% decline from current levels. On Thursday, the index closed at 3,152.05.

"I wouldn't paint myself as a bear, but the risks between here and year-end are completely to the downside," Subramanaian said.

She did point out that stocks have rarely been this attractive compared to bonds, but that may not last.

In reference to spiking coronavirus cases after President Trump's push for states to reopen the economy, she said: "We've had a reopening frenzy, and now we're seeing payback."

Read More: The most accurate analyst covering e-commerce says these 7 stocks will be among the biggest winners of the shift to online shopping

Consumer spending will undergo a radical change for millennials who have already been witness to the effects of the financial crisis, the Great Recession, and the current pandemic, she said.

They may adopt a "recession- or even depression-like" spending inclination.

Over the last 20 years, globalization, falling interest rates, and tax cuts created a robust environment for international investors who participated in the stock market boom. 

But that trend now seems to be waning, and Subramanian is "really worried" that never-before-seen monetary stimulus towards the Covid-19 outbreak has fast-forwarded stock market growth levels.  

She said that a Joe Biden victory in November will reverse market-friendly policies. Trump has said that if Biden wins the presidential election, stocks and 401ks would "disintegrate and disappear."

Subramanian thinks investors are ignorant of reality and that the "market isn't pricing in an all-clear on the economy."

While investors have been favoring stocks that benefit from the coronavirus, she thinks investors should lean towards consumer staples, industrials, technology, and financials.

Read More: Ed Hyman was named Wall Street's best economist 39 times and called the tech bubble. He outlines 3 market drivers that are aligning for investors looking to capitalize on coronavirus chaos.

SEE ALSO: A day-trader on Reddit claimed they made a 3,500% gain, and turned $35,000 into $1.25 million during the pandemic

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Omurwa accepts Petro Atletico deal, Wazito FC release Wahome and Kiongera
Publisher:  Goal.com News - English - America
Friday, 10 July 2020 05:44

The defender is set to move south after lengthy negotiations with the Angolan club

Instagram Bans LGBT Conversion Therapy, But The U.K. Government Still Hasn’t
Publisher:  Forbes Real Time
Friday, 10 July 2020 05:44

Today the social media giant Instagram has told the BBC, from today promotion of "conversion therapy", which tries to change a person's sexuality or gender identity will be blocked.

Nvidia overtakes Intel as most valuable U.S. chipmaker
Publisher:  VentureBeat
Friday, 10 July 2020 05:43

A Nvidia logo seen displayed on a smartphone
Nvidia has overtaken Intel for the first time as the most valuable U.S. chipmaker, with shares rising 2.3% in Wednesday afternoon trading to a record $404.Read More

Broad disapproval for Trump's handling of coronavirus, race relations: POLL
Publisher:  ABC
Friday, 10 July 2020 05:42

President Trump is facing broad disapproval for his management of the two major crises gripping the nation according to a new ABC News/Ipsos poll.

Alexander-Arnold targets 104 points as Liverpool seek to end record-breaking season in style
Publisher:  Goal.com News - English - America
Friday, 10 July 2020 05:41

The Reds have already wrapped up the Premier League title but are determined to add another notable entry to the history books

Amazon Plans $100M Stock Awards To Retain Zoox Talent, Will Back Out If Not Enough Workers Accept: Report
Publisher:  Benzinga
Friday, 10 July 2020 05:39

Amazon Inc (NASDAQ: AMZN) plans on awarding $100 million in restricted stock to Zoox employees to ind

read more


Muntari eyes Kaizer Chiefs move, with respect to Orlando Pirates & Mamelodi Sundowns
Publisher:  Goal.com News - English - America
Friday, 10 July 2020 05:38

Since leaving Segunda Division side Albacete at the end of last season, the former Ghana international has been clubless

Fri Jul 10 '20 Announcement from GPD XD limited edition with Memory of 128GB
Publisher:  Indiegogo: Announcements
Friday, 10 July 2020 05:35

The game section of the GPD official website is online,

providing: game download, gaming platform,

simulator, handle mapping and auxiliary tools.

Link:https://www.gpd.hk/gamesdownload


Mayor Of South Korea’s Capital Found Dead At Age 64
Publisher:  Forbes Real Time
Friday, 10 July 2020 05:35

The death of Park came as a tragic surprise in the midst of government efforts to combat the economic impact of the coronavirus, while reforming an economy dominated by historic conglomerates known as chaebol.

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