Bank of America: U.S. Stocks on Track for Fourth Consecutive Year of Double-Digit Gains, Materials Sector Expected to Be Next Strong Performer

Odaily Planet Daily News A team led by Michael Hartnett of Bank of America stated that U.S. stocks are on track to record double-digit gains for the fourth consecutive year, an extremely rare occurrence historically seen only a few times. The S&P 500 index currently corresponds to an annualized gain of about 20%. This sustained rally has previously only occurred during World War II, the post-war peace years, and the bubble phase from 1995 to 1999. The latest wave of momentum driven by the frenzy of capital expenditure on artificial intelligence has further pushed the stock market higher, but the rally has been very narrow. Now, other sectors are also beginning to show stronger gains. Hartnett and his team believe that supported by the resilience of the U.S. economy, small-cap stocks, emerging markets, and commodities "are all at a turning point towards a long-term bull market." The Bank of America team expects that materials stocks will become the next sector for a strong rally. Although this sector currently accounts for only 2% of the S&P 500, near a 30-year low, this situation is expected to change. Geopolitical competition for resources, increased military spending, the AI capital expenditure boom, and efforts to address the housing shortage will make the materials sector the "new bull market protagonist." (Jin Shi)