Bank of America’s top global strategist warns there’s ‘plenty of room for more S&P 500 downside’ as 80% of recessions since 1933 have torpedoed stocks by 20% after they started

• Bank of America’s Michael Hartnett says investors are overestimating earnings performance.
• Hartnett says S&P 500 EPS will fall by 16% in 2023, compared to the market’s view of -4%.
• History shows the market typically overestimates earnings performance ahead of a recession.

There’s one major thing working against the S&P 500 right now, according to Bank of America’s Chief Global Equity Strategist Michael Hartnett: investors’ repeated inability throughout history to anticipate recessions and their impact on earnings.