Bank of America Merrill Lynch analyst Savita Subramanian has a crystal ball with a 10-year window on it, and she likes what she sees.
How much so? Enough that she thinks the stock market benchmark is likely on a journey to 3,500, where it will stand precisely at Dec. 31, 2026.
OK, sure: Subramanian issued the forecast with at least a little bit of a wink and a nudge during a media briefing Tuesday on the firm's 2016 outlook. Calling exact price targets in any part of the market is generally a fool's errand, the most recent exhibit being all the firms on Wall Street, BofAML included, that had to reduce their price targets for what has been a lackluster 2015.
But at least in a directional sense, she believes the market, despite a flat performance this year, will bounce back in the year ahead and produce reliable returns for most of the next decade.
"Stocks still look like the best game in town," said Subramanian, the head of U.S. equity and quantitative strategy at BofAML, consistently rated one of the most accurate global and U.S. forecasting firms on Wall Street even with the dose of over-enthusiasm in 2015.