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"BoA’s equity strategists have a put in place a modest year-end 2016 target of 2,200 for the S&P 500, around 5% from present levels. The target is based on six valuation and technical models, which suggest a year-end range of between 2,109 and 2,351 for the index.BoA points out in its research that due to the unpredictable nature of the market, it’s difficult to predict accurately where the market will be 12 months from now by using fundamental factors. However, over the long-term research shows that valuations and fundamentals*have historically explained*60-90% of subsequent returns over a 10-year time horizon. BoA’s preferred valuation metric — normalized P/E — has explained 80% to 90% of returns over the subsequent 10 to 11 years.Based on current valuations, analysis suggests compounded annual returns of 8% for the S&P 500 over the next ten years."
"BoA’s equity strategists have a put in place a modest year-end 2016 target of 2,200 for the S&P 500, around 5% from present levels. The target is based on six valuation and technical models, which suggest a year-end range of between 2,109 and 2,351 for the index.BoA points out in its research that due to the unpredictable nature of the market, it’s difficult to predict accurately where the market will be 12 months from now by using fundamental factors. However, over the long-term research shows that valuations and fundamentals*have historically explained*60-90% of subsequent returns over a 10-year time horizon. BoA’s preferred valuation metric — normalized P/E — has explained 80% to 90% of returns over the subsequent 10 to 11 years.Based on current valuations, analysis suggests compounded annual returns of 8% for the S&P 500 over the next ten years."
[text] Bank of America: The S&P 500 Will Hit 3,500 By 2025 Because Valuation Metrics Show Stocks are Still Undervalued | Valuewalk
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