Bank of America sees end of bull market coming in 2018
Here's how it will happen
Bank of America Merrill Lynch predicts "capitulation" for the bull market in 2018, with the S&P 500 peaking at 2,863.
Strategist Michael Hartnett said the firm is prepared to "downgrade risk aggressively" once it sees the triggers in place.
A shift from passive to active in investor allocations would be one of the signs that the rally is about over.
Bank of America Merrill Lynch sees a scary good news-bad news scenario unfolding in 2018: A solid push higher in the first half followed by all sorts of potential trouble after.
The S&P 500 would peak out around 2,863 in the scenario, or about 11 percent higher than Monday's close. Bond yields are expected to rise, with the benchmark 10-year Treasury note hitting 2.75 percent as global GDP growth reaches 3.8 percent.
That setting assumes three things: the "last vestiges" of stimulus from the Fed and other central banks, the passage of tax reform in Congress, and "full investor capitulation into risk assets" on better-than-expected corporate earnings.
After that, though, things get considerably sketchier as the second-longest bull market in history runs into trouble.
Source: https://www.cnbc.com/2017/11/21/bank-of-america-bull-market-ending-in-2018-how-it-will-happen.html?recirc=taboolainternal
Source: Altcoinstalks.com
