Bank of America reported that equities outpaced both bonds and cash last month, highlighting investors’ growing risk appetite and suggesting that market leadership is expanding beyond just mega-cap stocks.
The S&P 500 posted a total return gain of over 2%, while investment-grade corporate bonds rose 1.06% and Treasury bills added 0.39%. Gold led all asset classes, climbing 3.95%.
The equal-weighted S&P 500 advanced 2.83%, outperforming the cap-weighted index, with the smallest 450 companies slightly surpassing the 50 largest by market capitalization. Global equities outside the U.S. also showed strength, led by Japan and Europe.
Sector performance was mixed: seven out of 11 S&P groups exceeded the broader index, including materials, healthcare, energy, and communications, while technology, utilities, industrials, and consumer staples lagged.
Value stocks gained 3.19%, outpacing growth at 1.12%, narrowing growth’s year-to-date lead to roughly one percentage point. BofA indicated that value may continue to lead as the cycle shifts toward recovery, supported by lower valuations and lighter positioning.
Lower-quality stocks also extended their rally, with weaker-rated companies outperforming higher-quality peers. Small-cap equities delivered their strongest relative performance versus large caps since July 2024, bolstered by expectations for Fed rate cuts and stronger-than-anticipated earnings. The Russell 2000 rose 7.14%, exceeding the Russell 1000’s 2.10% gain, while microcaps surged 9.25%.
BofA noted that small-cap outperformance may persist in the near term, aided by dovish comments from Fed Chair Jerome Powell and early signs of U.S. economic recovery.
“We see potential for continued Value leadership going forward, given the possibility of a cyclical recovery and a likely flip in our Regime Indicator to Recovery, coupled with higher quality, more inexpensive valuations,” said BofA analysts.
Este contenido es únicamente con fines informativos y no constituye asesoría financiera, de inversión ni de ningún otro tipo profesional. No debe considerarse como una recomendación para comprar o vender valores o instrumentos financieros. Todas las inversiones implican riesgos, incluida la posible pérdida del capital. El rendimiento pasado no garantiza resultados futuros. Se recomienda realizar su propia investigación y consultar con un asesor financiero calificado antes de tomar cualquier decisión de inversión.
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