Shift from mega caps to mid-cap equities predicted in 2025 due to better fundamentals

From Investing.com: 2024-12-30 09:56:15

Bank of America predicts a shift in market leadership away from mega cap stocks to mid-cap equities in 2025 due to better fundamentals and lower risks. Small caps face earnings recession and refinancing risks, making them less attractive. Value stocks are expected to perform well as interest rates rise, but economic stagnation could pose a challenge. Investors may benefit from sector-specific long-short strategies amidst low correlations and rising idiosyncratic risks. Regulatory changes post-election could lead to corporate consolidation, favoring undervalued companies.



Read more at Investing.com: Mega caps expensive and crowded, says BofA By Investing.com