Further proving that any kind of "analysis" coming out of major banking institutions on Wall Street is useless, Bank of America has now revised their S&P target for the year to a "wide range" between 2,200 and 4,000.
The revisions come after the bank's strategists have wildly raised and lowered their estimates for the year based on looking back at the market's performance, instead of forward at where the market will go. For example, the bank cut their year end target for the market twice this year while the market was faltering during the beginning of the pandemic, according to Reuters.
Then, watching the market resiliently spike higher thanks to the Fed, the same strategists decided to once again increase their estimates.
In other words, the bank isn't skating to where the puck is going; it's skating to where the puck has already been. It's a model that seems to be "good enough" for people to buy into sell side analysts, so why would Bank of America's outlook on the overall market be any different? Especially when people like Carson Block try to call the sell side out, they get accosted by an indignant sounding (and generally clueless) Wilfred Frost live on CNBC.
But we digress.
The fact is that most analysts - but for some Twitter personalities and "alternative" analysts - simply didn't see the coronavirus pandemic's impact on markets coming. That left them chasing the market lower with their price target early in the year. As the market...