The S&P 500 Will Be Flat in 2022, BofA Strategists Say. Where They See Buying Opportunities

Bank of America‘s experts said on Monday that they expect to see three U.S. rate hikes and a flat stock market in 2022. But they said parts of the stock market are still worth buying.
In a Monday webinar, Michelle Meyer, Bank of America’s head of U.S. economics, predicts the gross domestic product to be 6% stronger in 2021 compared with last year, and expand another 4% in 2022 and 2% in 2023.

Inflation will likely cool down next year, but Meyer sees it remaining well above the target, and that will push the Federal Reserve to take action. The central bank will likely start raising interest rates from June next year, said Meyer, who expects to see three hikes in 2022, four in 2023, and one more in 2024.
The S&P 500 companies are estimated to increase their earnings by 6.5% next year, but the index would likely stay flat from today’s level, sitting around 4,600 points by the end of 2022, said Savita Subramanian, head of U.S. equity & quantitative strategy and ESG research at Bank of America.

Read more at: The Stock Market Will Be Flat in 2022. Where They See Buying Opportunities. | Barron’s (