Bank of America Merrill Lynch strategists have raised their target for the S&P 500 this year.
The strategists expect the S&P 500 index to rise 12 percent this year after its increase of 19.4 percent in 2017 and 9.5 percent in 2016. The target was raised to 3,000 from 2,800.
Despite the fact that shares of U.S. companies are expensive, by historical standards they are quite cheap compared with bonds.
Deutsche Bank, RBC, Credit Suisse and UBS also expect that the S&P 500 will reach the 3000 mark by the end of 2018.