The S&P 500 has potential to rally as much as 10 percent from current levels if the United States and China come to terms on a trade agreement that’s “the real deal,” Bank of America’s Savita Subramanian told CNBC.
“A partial deal, which is no new tariffs but we don’t roll back any 2018 tariffs, that’s largely priced in, and I would sell the news on that one. I think the market might sell up a little bit,” the Merrill Lynch head of U.S. equity and quantitative strategy said Tuesday on “Fast Money.” “But if we get the real deal … that would add at least 1 or 2 percentage points of earnings growth to 2019 that’s not in the numbers.”
