Another high profile Wall Street strategist has cut his target for the stock market.
In a note to clients late Friday, Deutsche Bank’s David Bianco cut his year-end target on the S&P 500 to 2,050 from 2,100, which was actually a target that was revised down from 2,150 on September 18.
Following the disappointing jobs report, Bianco noted that the Federal Reserve would keep interest rates very low for much longer than expected. This is bad news for banks, which he said currently face “spartan interest rate conditions.”
“We see a better chance of landing men on Mars before a full normalization of nominal and real interest rates, especially 10yr yields, to historical norms,” Bianco said. “We doubt 10yr Treasury yields exceed 3% for the rest of this cycle.”
It’s important to note that while Wall Street has been cutting their targets, their targets remain well above the current level of the stock market. According to FactSet, the average S&P 500 target among strategists is 2,180, which is around 11% higher from today’s levels.
Business Insider Emails & Alerts
Site highlights each day to your inbox.