Bank of America’s head of U.S. equity and quantitative strategy Savita Subramanian spoke on Tuesday with CNBC. Analysts at the firm have a 5000 target for the S&P 500 by the end of 2024, saying the market has handled Fed rate hikes well.
- “There’s a high probability of pullbacks next year around various areas of concern, but I do think that we’re in a healthier market setup than we have been in a long time,”
- “The higher interest rates are gonna hit a lot of pockets of the economy, not necessarily public equities, because public equities have been marked for this environment ... public equity right now is marked to exactly what’s happened, and that is a high interest rate environment.”
However, the picture is not without worries:
- “What I worry more about is all the stuff sloshing around in private equity, private credit, the shadow lending machine that’s been taking place for the last 10-15 years.”
Federal Reserve Chair Powell
