Bank of America: U.S. Stocks on Track for Four Consecutive Years of Double-Digit Gains, Materials Sector Expected to Be Next Strong Performer
Svmuu reports that a team led by Michael Hartnett of Bank of America stated that U.S. stocks are on track for a fourth consecutive year of double-digit percentage gains, a highly rare occurrence that has only been seen a handful of times in history. The S&P 500 Index is currently on pace for an annualized gain of about 20%. This sustained rally has previously only occurred during World War II, the post-war peace years, and the bubble phase from 1995 to 1999. The latest wave of momentum driven by AI capital expenditure frenzy has further pushed stocks higher, but the rally has been very narrow. Now, other sectors are beginning to show stronger gains. Hartnett and his team believe that supported by the resilience of the U.S. economy, small-cap stocks, emerging markets, and commodities are "all at a turning point for a long-term bull market." The Bank of America team anticipates that materials stocks will become the next group of strong-performing sectors. Although this sector currently accounts for only 2% of the S&P 500, near a 30-year low, this situation is expected to change. Geopolitical competition for resources, increased military spending, the AI capital expenditure boom, and efforts to address the housing shortage will make the materials sector the "new bull market protagonist." (Jin Shi)
Source:Odaily · Source Link
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