BofA raised its S&P 500 price target for 2023 to 4,300, arguing that a lot of bad news is already priced in. Subramanian increased her 2023 year-end S&P 500 price target to 4,300 from 4,000, representing potential upside of 3% from current levels. And while current stock market valuations are not low, with the S&P 500's forward price-to-earnings rate at about 19x, it's also not extreme. Additionally, when you exclude the to 50 stocks in the S&P 500, valuations fall considerably. That's why she is favoring ownership of an equal-weighted basket of the S&P 500 rather than the index itself.

Source: Mint May 22, 2023 17:19 UTC