BofA – US Equity Strategy Year Ahead: 2026 Year Ahead

The main theme is the forecast and investment strategy for US equities in 2026.

Key findings include the expectation that the S&P 500 index will reach 7100 in 2026 with a 14% profit increase but a reduction in the P/E ratio. Moderate stock price growth (~5%) is forecasted. A decrease in stock buybacks and an increase in capital expenditures (capex) are expected. Sectors of increased interest include financials, real estate, materials, healthcare, and energy. A decline in demand for white-collar workers due to automation and AI is anticipated. The current situation is compared to the dot-com bubble of 2000, but with less speculation and more profit growth support.