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Bank of America says don’t count out U.S. stocks just yet. HSBC downgraded them for second time in a month. - MarketWatch

1. Bank of America supports buying U.S. equities despite recent skepticism. 2. The S&P 500 has risen 4.5% since March 13., recovering from drawdown. 3. HSBC downgrades U.S. equities to underweight, citing depressed sentiment. 4. Policy changes under the new administration may impact market confidence. 5. Medium-term equity outlook remains positive despite recent underperformance.

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FAQ

Why Neutral?

The split views from major banks indicate uncertainty. Historical analogies from tech bubbles suggest volatile times may lie ahead.

How important is it?

The contrasting views on market direction could lead to shifts in investment strategies, affecting S&P 500.

Why Short Term?

Immediate reactions may be observed as markets respond to mixed signals. Economic policy impacts could change market sentiment quickly.

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