S&P 500 to see 11% rally in next 12 months – BofA
|Despite its "Sell Side Indicator" having risen to 55.8% from 54.9% in June, the S&P 500 index is expected gain over the next 12 months, explained the analysts at Bank of America (BofA) Global Research in their latest client note.
Key quotes
“The reading implies an 11% return for the S&P 500 over the next 12 months.”
"This indicator is the most bullish of our five target models and continues to indicate that sentiment on stocks is still tepid, far from the euphoria one sees at the end of bull markets."
"The dividend yield of the S&P 500 is now at a multi-decade record multiple of bond yields, and whereas the sustainability of dividends has come into question amid the recession, we think a significant proportion of the S&P 500 offers sustainable dividend yields."
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