While splits among strategists have long existed, most tend to lean bullish, as stocks normally advance. The bears are ascendant this year. Lori Calvasina at RBC Capital Markets is among those saying stocks could fall further from here before rising into the year-end to finish at 2,750.

Strategists at Bank of America last week lowered their year-end S&P 500 target in conjunction with a severe growth downgrade by the firm’s economists, who forecast the deepest recession yet in the post-war era. The bank’s strategists see the index ending 2020 at 2,600, saying it could take years to recover lost corporate earnings.

At Citigroup Inc., Tobias Levkovich, also recently downgraded his target, saying the S&P 500 could trough at 2,100 and end the year at 2,700. “There is much unknown in the current environment and we will need to see some harder data before considering any changes to our outlook,” he wrote in a note.

For Peter Mallouk, president of Creative Planning, all that’s certain at this point is that there will be more volatility. “Fasten your seat belt, I certainly wouldn’t loosen it now,” he said in a phone interview. “We are going to see more volatility and we’re going to see it until we have a clear vision on what’s going to happen with the coronavirus.”

This article was provided by Bloomberg News. 

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