BofA's stock market strategy for 2025? Pick stocks and buy indices

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BofA's stock market strategy for 2025? Pick stocks and buy indices

Investing.com -- Bank of America analysts outlined a nuanced 2025 stock market strategy, emphasizing selectivity over broad market exposure.

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. For small caps, the profitability recovery initially anticipated by mid-2024 has been delayed, leaving the segment stuck in what BofA calls a"value trap."

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