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Stocks Tipped to Rise Further in 2026 with Fed, Trump, and Retail Backing
16 Nov
Summary
- Bank of America expects stocks to keep climbing into 2026 with support from Fed, Trump, and retail investors
- Strategist sees "bubble in expectations," not a financial bubble, behind recent market weakness
- Signals to sell may come from bank stocks or credit spreads, but not until May 2026
According to a recent research note from Bank of America, stocks are poised to maintain their momentum well into 2026, with support from the Federal Reserve, the Trump administration, and retail investors.
Michael Hartnett, Chief Investment Strategist at BofA Merrill Lynch Global Research, argues that a "bubble in expectations," not an actual financial bubble, lies behind the market's recent weakness. He cites the government's efforts to backstop markets, optimism about the Fed's quantitative easing, and the tailwind from tax cuts and tariff dividend checks as factors that have propped up the markets.
