The stock market is indeed expensive, but Bank of America believes there’s still potential for growth. The bank notes that heavily regulated sectors have yet to fully recover from the pandemic and economic downturns. This underappreciated sector is seen as a promising bull case by Bank of America.
Despite the high costs, investors are continuing to buy into the market. After a recent dip in Walmart’s stock, broader losses were narrowed down, and the S&P 500 remained close to its record high. The bank tracks 20 valuation metrics for the S&P 500, with only one showing significant concerns. The current state of the market shows resilience as investors remain optimistic about future performance.
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Source: https://www.marketwatch.com/story/the-stock-market-is-expensive-but-theres-still-one-bull-case-not-priced-in-says-bank-of-america-b64cf7a9