iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,431 Blog Posts

Mysteries Revealed: BofA/Merrill Has Mapped out Your Next 10 Years

First off, “BofA/Merrill” is a really stupid name. Why don’t you pick one: Bank of America or Merrill? Second, when was the last time the market has gently glided higher for 16 years? Becaue that’s what BofA/Merrill is suggesting now, with their harebrained research note.

“Based on current valuations, a regression analysis suggests compounded annual returns of 8 percent over the next 10 years with a 90 percent confidence interval of 4-12 percent. While this is below the average returns of 10 percent over the last 50 years, asset allocation is a zero-sum game. Against a backdrop of slow growth and shrinking liquidity, 8 percent is compelling in our view. With a 2 percent dividend yield, we think the S&P 500 will reach 3500 over the next 10 years, implying annual price returns of 6 percent per year.”

Their regression analysis suggests, with 90% confidence, that you’re gonna be bored to pieces with this market, all the way out to the year 2025.

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11 comments

  1. vampyr

    Let us not fret. There will always be bad boys and girls to make things exciting.

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  2. probucks

    Thank god no one listens to BAML’s macro equity research. The fixed income /fx / commodity stuff isn’t a bad read if you can get the strategy reports from a friend. Ever since they axed Neil Curry for too many ‘short equities’ reports I got a bit more skeptical of them

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  3. Marc David

    Happy Turkey Day vampyr!

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    • vampyr

      Not sure how to interpret that. I’ll say this, even as a little vamp I always found Thanksgiving to be the most boring “holiday” of them all; redundant and confusing.

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  4. dewey dortmunder

    Fly, since you are a oenophile and a general knowledgeable guy, what kind of wine should I be drinking with the turkey and for dessert?

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  5. jonny

    “Becaue”

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  6. blahblahblah

    SUNE mowing down lazy shorts today haha

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  7. it is showtime

    Bofa finds europe’s record €2.6T negative yielding debt shocking

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