In the new year, a lot has happened to the market within five weeks.
For one reason, the S&P 500 has fallen approximately 6%.
In a note on Thursday, UBS (NYSE: UBS) equity strategist, Julian Emanuel, revised his 2016 S&P 500 year-end prediction down to 2,175 from 2,275.
But it seems that a lot has worsened from the beginning of this year. He explained:
"The 'known unknowns' intensified in January – China equity market and FX instability, a renewed oil price plunge, questions as to whether the Fed made a policy error by hiking in December as US economic data has surprised to the downside. These have translated into softer CEO confidence (even as consumers remain resolute), sparking talk of an imminent US recession - a likelihood which UBS continues to believe is small in 2016.
When combined with the unprecedented uncertainty of US politics, market volatility has justifiably risen and is likely to remain elevated into the fall elections."
The S&P 500 opened at 1,902.65 on Thursday.
His prediction was among one of the most bullish on Wall Street at the end of last year.
His target cut comes After Maury Harris, UBS' chief US economist, lowered his 2016 GDP forecast from 2.8% to 1.5% Emanuel cut his target from 2,275 to 2,175.