Small cap stocks in the US stock market surged in this round, with valuations going up, but profits did not keep up.
Bank of America Merrill Lynch indicated that the sales growth of small cap stocks in the third quarter was negative and below expectations. Although the guidance for this earnings season has improved, it still appears weak compared to large cap stocks. However, over the next decade, the performance of small cap stocks may outperform that of large cap stocks.
Technical analysis master's blockbuster prediction: US stocks may be about to peak!
Bank of America also listed three major risks, highlighting the precarious rise of the U.S. stock market following Trump's victory.
Options long position abnormal! Will the US stock market be 'dangerous' next?
U.S. stock investors are making significant adjustments to their positions and starting to hedge...
Latest holdings exposure on Wall Street! Wells Fargo & Co, bank of america 'abandon' apple
U.S. stock market barometer.
Trump 2.0 is coming on strong. Is the usa economy's "soft landing" in jeopardy?
Economists are concerned that if Trump fulfills his key campaign promises, inflation may spiral upwards, and economic growth may stagnate or slow down.
As US bond yields soar, how much longer can the US stock market party last?
Currently, there are no signs of a bear market in the US stock market, but the surging yields on US Treasury bonds may become a turning point for the situation. Bank of America Merrill Lynch states that when the 10-year US Treasury yield exceeds 5%, investors tend to shift from the stock market to the bond market, limiting the rise of US stocks. This yield has climbed by 80 basis points since mid-September, although the bank indicates that the current interest rate risk is manageable.