BofA’s stock market strategy for 2025? Pick stocks and buy indices By Investing.com
Investing.com — Bank of America analysts outlined a nuanced 2025 stock market strategy, emphasizing selectivity over broad market exposure.
Their latest note suggests investors focus on mid-caps over small caps and prioritize stock picking rather than relying solely on index investing.
While small caps have rallied post-election due to momentum, seasonality, and favorable positioning, BofA remains cautious in its outlook.
The bank’s analysts cite “more post-election policy risk,” “continued EPS weakness,” and the re-emergence of refinancing risks as significant headwinds for small caps in 2025.
Despite these challenges, opportunities exist, with BofA advising investors to “pick stocks over indexing” in this category.
Mid-caps,…
