Bank of America’s revised S&P 500 year-end forecast of 6,300 underscores its belief that overall equity upside is limited, preferring tactical shifts into cyclical sectors like financials, industrials, and materials.
Their research suggests that as tech-led growth plateaus, themes such as tightening labor markets and infrastructure bills could benefit cyclicals more in 2025. With valuations elevated in large-cap tech stocks, BofA sees potential value in more underappreciated sectors.
This shift suggests investors should rebalance portfolios toward less overheated areas to capture better returns over the coming quarters.
