Stock market forecast: What to buy, why big tech will fall more: BofA

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Bank of America’s top US equity strategist told us her highest-conviction trade right now — and shares 3 reasons why the market’s favorite growth stocks still have more to fall as value is due to outperform

and an impending economic reopening weigh on investors' minds and threaten to upend the market's order perhaps more quickly than some expected., the large-cap growth stocks that rule the tech sector and the broader market won't be hitting a floor just yet.

by year-end . That is the point, she said, where asset allocators will start moving out of stocks — particularly growth stocks — and into bonds. She said valuations of growth stocks should drop 10% or more, while valuations of value stocks should rise 10% or more.. She said that there is an"extreme level of overweight positioning" from long-only fund managers.

She added that positioning, combined with the disparity in valuation between growth and value, provided a unique opportunity for investors.

 

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