The S&P 500 (SPX) has repeatedly secured record highs in 2025, leaving some investors stranded on the sidelines and waiting for lower prices.
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However, buying the benchmark index at an all-time high isn’t necessarily a bad strategy, according to Bank of America, which said “over the past fifty years, S&P 500 returns showed no penalty versus buying on any other occasion, and five years later there was on average a meaningful boost.”
BofA Flags Record Cash and Pessimism as Bullish Factors
BofA also pointed out that household cash is at its highest level since 1991, driven by high interest rates. That could give a boost to the market if the cash makes its way into equities. That scenario is on the table with rate cuts likely on the way.
Furthermore, the bank took a contrarian approach by noting that many consumers, companies, and lenders are bearish, calling this view “The best reason to stay bullish into year-end.”
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