The bull market in stocks is set to continue and investors should remain invested, Bank of America said in a note on Thursday.These are the 3 pillars that will support the bull market going forward, according to BofA.Investor worry has been on the rise in recent weeks as rising interest rates and inflation fears sparked a sharp decline in high-growth stocks.
In a note on Thursday, BofA brushed off concerns about rising bond yields and inflation and said investors should "stay bullish" and consider buying reopening stocks as well as to "take a look at bruised tech." The bank said 3 pillars are supporting the current bull market and will continue to do so. The 3 "firmly in place" pillars include massive free liquidity growth, an exceptionally strong earnings growth cycle, and substantial market breadth.
Investors portfolios should be "bullishly positioned" and remain untouched amid the recent bout of negativity, BofA said. The bank said it will only begin to worry about the stock market "when free liquidity tightens, when the EPS growth cycle is enfeebled, and when the tape breaks down," the note said.