The stock market is expensive. But there’s still one bull case not priced in, says Bank of America. - MarketWatch
1. S&P 500 is 0.4% below its record high. Investors are buying the dip. 2. Bank of America finds 19 of 20 metrics indicate S&P 500 is expensive. High valuations persist. 3. Tech stocks and deregulation could justify the premium. Efficiency improvements support growth. 4. Deregulation may re-rate financials against tech. This shift could alter sector valuations. 5. Upcoming economic data and options expiration may add volatility. Market sentiment remains mixed.