BofA Sees Profit-Taking Ahead as Bearish Signals Mount
Bank of America Securities warns US equities look extended, with roughly 70% of bear-market signals already triggered and the S&P 500 expensive on about 17 of 20 metrics. Softening consumer demand (SLOOS) and internal tech stock disparities point to rising instability, prompting a call to take profits. While some fundamentals remain healthy, the strategists see limited upside for the broader index and peg a year-end S&P 500 target of 7,100 versus around 7,450 mid-day, suggesting stock-picking may outperform the market.