Page 33 - Nalyst Note News Today

Fundstrat has remained resistant to cutting its year-end price target of 5,100, which represents potential upside of 39% from current levels.

A valuation model used by Bank of America suggests forward annualized price returns of 6% for the S&P 500 over the next decade.

"Although we have tempered our enthusiasm, we truly believe that stocks can and should rebound from current levels," Belski said.

"Historically, it takes an average of 10 years for a developed economy to return to 2% inflation [once] the 5% threshold is breached," BofA said.

The ARKK ETF will fall more and recover more slowly than the Nasdaq in the early 2000s because "it does not own as many large, seasoned companies."

"Higher discount rates reward firms that produce high profits today, not speculators seeking profits far in the future," Bank of America said.

"Only question for investors is hard landing or soft landing in 2023; we say hard landing," Bank of America said.

"The promising aspect is the job openings are falling but the unemployment is not rising," Fundstrat's Tom Lee said.

Global US dollar liquidity is now in the "danger zone where bad stuff happens," Morgan Stanley's Mike Wilson said.

"From a risk/reward perspective, cash's profile has markedly improved relative to equities," BofA's Savita Subramanian said.