+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Bank of America names 2 sectors investors should buy in to as the bull market makes history

Aug 22, 2018, 19:53 IST

Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading March 30, 2009 in New York City. All U.S. stock indexes were down sharply this morning, with the Dow dropping 288 points at one point, on the news from the Obama administration suggesting potential bankruptcy for General Motors and rival carmaker Chrysler. Yesterday the Obama administration demanded the resignation of GM Chairman and CEO Rick Wagoner as a condition of the administrations ongoing bailout plan for the struggling auto industry.Mario Tama/Getty

Advertisement
  • Bank of America Merrill Lynch has moved to an overweight on the industrials and healthcare sectors.
  • The bank's equity strategists don't see the bull market in stocks ending soon, mainly because earnings growth is still strong.
  • This bull market is set to become the longest in history, as measured by its rise from the 2009 trough, after the market close on Wednesday.

The bull market in US stocks is one day away from making history as the longest ever, as measured by its rise from the trough hit in March 2009.

Bank of America Merrill Lynch doesn't see it ending anytime soon, mainly because earnings growth is still strong. In fact, the bank's equity strategists have broadened out the sectors they're bullish, or overweight, on by adding industrials and healthcare to the list. Their other overweights are in financials, materials, and technology.

The two new overweights represent a barbell approach that seems appropriate for an extended bull market and economic cycle. According to Savita Subramanian, the firm's head of US equity and quant strategy, the overweight on industrials creates cyclical exposure, while the healthcare bet is defensive. ...

Sponsored: If you enjoyed reading this story so far, why don't you join Business Insider PRIME? Business Insider provides visitors from MSN with a special offer. Simply click here to claim your deal and get access to all exclusive Business Insider PRIME benefits.

Advertisement

NOW WATCH: What's going on with Elon Musk

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article