This Wall Street Firm Sees A Negative Year Ahead For The Stock Market

This Wall Street Firm Sees A Negative Year Ahead For The Stock Market

Share to Linkedin With signs of excessive speculation and high valuations in the stock market, the current environment resembles a late-cycle bubble that is very much "similar" to the dotcom boom in 2000, Bank of America says, predicting a negative year ahead for stocks in 2022. Bank of America expects stocks to be bumpy in 2022 as the market faces a growing number of ... [+] challenges. "There are too many similarities between today and 1999/2000 to ignore," said analysts led by Savita Subramanian, head of U. S. equity and quantitative strategy at Bank of America, in a recent note. The current market set-up is very similar to the one just before the internet tech bubble burst in the late 1990s, when stocks fell into a bear market starting in 2001, the analysts said. Some of the signs in today's market are arguably worse than in 2001, Bank of America argued, adding that signs of speculation are evident amid a "growing acceptance of the unthinkable" among investors. With a slew of increasingly worrying signs in today's markets—including negative real interest rates, surging inflation, frenzied IPO activity and liquidity risks, the Wall Street firm now predicts a negative year for stocks