Bank of America: S&P 500 Could Head to 2,700 or Dip to 1,600 in 2017

While Bank of America (BAC) - Get Report expects the S&P 500 to reach 2,300 by the end of 2017, their forecast has a stark bull and bear case: 1,600 or 2,700. "It could be a great year," said Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch. "This could be the year of euphoria where policy delivers, we get fiscal stimulus, tax cuts, growth improves, rates slowly rise and we get healthy inflation -- that I think would push the market, in our bull case, to about 2,700." On the flip side, the bear case stings. Factors that may cause the S&P 500 to hit Bank of America's bear case of S&P 500 1,600 include stagflation, protectionism, trade wars, a fast pace of interest rate hikes and a failure of the incoming Trump administration to pass tax cuts and infrastructure spending. TheStreet's Scott Gamm reports from New York.