BofA says Trump will backstop stocks this year, but to closely watch one key area of the market.
Michael Hartnett, an investment strategist at the bank, said that while President-elect Donald Trump’s influence and policies could provide a safety net for the stock market, upside is constrained by high concentration in a handful of stocks, elevated valuations, and stretched positioning by investors.
Hartnett highlighted that the bank’s December fund manager survey showed investors are holding a record overweight position in US stocks.
Source: MARKET.BUSINESSINSIDER