According to Zhengtong Finance APP, Bank of America strategists say that the relative levels of the nasdaq 100 index and the S&P 500 index are approaching a critical point, which may trigger a release beneficial to the trends of usa stock trading. Led by Michael Hartnett, the Bank of America team states that the relative pricing of the tech-heavy nasdaq 100 index is higher than the peak reached in 2000 compared to the S&P 500 index, 'allowing investors to feel comfortable going long on usa technology stocks and the dollar.' At the same time, they wrote in a report that if this level is broken, it will strongly drive people to exit the 'US exceptionalism' trade.

Hartnett stated last week that going into next year, investors should start allocating more funds to stock markets outside the usa, suggesting investment in stocks in china and europe. The S&P 500 index rose by 25% in 2024, with a similar increase in the previous year.

Strategists indicate that, based on historical precedent, the S&P 500 index is expected to see double-digit rises or falls again in 2025. They state that the 'secret weapon' for further gains is the declining bond yields.

However, the team expects that bond prices will reflect rising inflation and diminishing interest rate cuts early next year, keeping yields high and limiting risk assets. The bank of america's cni investment clock index also suggests that the csi commodity equity index will rise in 2025, profits will increase, and interest rates will rise.

Driven by a strong usa economy, Fed rate cuts, and a boom around the development of ai, the S&P 500 index continues to trade near historical highs. According to Bank of America's report, usa stock funds are expected to attract a record inflow of funds this year, with an annualized total reaching 448 billion dollars.

In contrast, the 'unpopular' european stock funds are expected to see an outflow of 58 billion dollars in 2024.