Bank of America Predicts Lackluster 2026 for S&P 500, Contrasting Crypto Market Optimism
Bank of America's lead equity strategist Savita Subramanian forecasts a modest 4% gain for the S&P 500 in 2026, targeting 7,100 amid expected softness in mega-cap tech stocks and reduced liquidity. This bearish outlook contrasts sharply with the index's 16% YTD performance fueled by AI-driven tech rallies.
While traditional markets face headwinds, cryptocurrency assets like BTC, ETH, and SOL continue demonstrating decoupled performance characteristics. The divergence highlights how digital assets may offer alternative growth avenues when conventional equity markets stagnate.
Notably absent from BofA's analysis is any discussion of crypto's evolving role as a portfolio diversifier. As institutional adoption grows through exchanges like Coinbase and Binance, digital assets increasingly behave as independent asset classes rather than risk-on proxies.
