In the market landscape, still fixed due to fear of stagnation and modest recovery, American Bank Bank calls controversially and undoubtedly Bullish.
Based on a new note from BOFA research analysts, the next phase of US economy and shares may not be a normal recovery but a direct boom.
“Today, the confluence of the factors says that the main risk of a tail, which may not be raised, is not only cyclic recovery but also boom,” they said.
Bofa analysts quote five pillars that support this more bull case.
The first is the political will, stating that the US mid -quarters, political makers, have a strong incentive for the nearest and growth initiatives.
The second is the Washington One Big Beautiful Bill Act (OBBBA) for domestic production.
The third is the huge gathering of overseas motion, as Germany recently announced the largest stimulus package in EU history and the global reflex force is building elsewhere.
Fourth, Bofa sees a broad expansion of capital costs, with hypercalers such as Amazon, Meta, Microsoft and the alphabet, and for nearly $ 700 billion capital costs from 2025 to 2026.
Fifth, Bofa mentioned its patented “mode indicator”, macro signal mix, including corporate review for one promotion, GDP forecasts and other emerging signals. This is on the “recession” to the “recovery” threshold – a change that historically indicates the value of the value of the stock.
According to the Bofa team, led by a peculiar subramanian, the dominant narrative remains conservative in this indicator. June 70% of the fund managers still predicted that stagnant, and only 10% predicted that the growth of trends and inflation “boom”. Still, according to Bofa, the fracture catalyst is real and imminent upside down. If the mode indicator in early August is actually moving to “recovery”, the historical precedent indicates that rapid rotation is likely.
So how healthy these five factors really look like?
The highest economy has already promised a huge stimulus. In March, China announced plans to release a 1.3 trillion yuan ($ 179 billion) special Treasury bonds, as well as 4.4 trillion yuan from local government special bonds.
Meanwhile, most of the EU stimuli, still flowing from the earlier Package of NextGeneration, is up to 806.9 billion euros (about $ 880 billion) until 2026.