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The S&P 500 Is Going Back To 2,100 This Year: Credit Suisse

Credit Suisse's Global Equity Strategy team has reduced its year-end target for the S&P 500 to 2,100 following this week's volatility. (The S&P 500 traded around this level before the sell-off began on August 19.) The team has also reduced its mid-2016 target to 2,200, but remains ""remains constructive on Equities" (whatever that means).

Credit Suisse's Global Equity Strategy team remain constructive on equities for several key reasons, all of which, they believe, show that the market isn't ready to roll over just yet.

S&P 500: Not ready to roll over

Credit Suisse's Global Equity Strategy team points to the fact that historic data shows summer sell-offs tend to reverse 70% of the time and markets usually go on to print a new high within a year. Evidence that there is some panic selling going on (bond yields are up, cyclicals moved in line with defensives, and the dollar is down, despite worries on growth and China) supports this view.

Historically, the S&P 500 moves higher after a summer sell-off

Further, risk appetite (the ratio of equity-to-bond returns) is implying that global...