Bank of America sees market decline next year: 'There is now an alternative to stocks'

Bank of America Merrill Lynch's Savita Subramanian says the S&P 500 will rise to 3,000 by the end of this year and then will decline to 2,900 next year. "Our rates team is calling for an inverted yield curve during the year, homebuilders peaked about one year ago and typically lead equities by about two years and our credit team is forecasting rising spreads in 2019," Subramanian says. There is a good chance stocks stall out next year as credit conditions tighten and earnings growth slows, according to Bank of America Merrill Lynch.