Bank of America Predicts Bull Market Through 2027

Bank of America analysts forecast that a strong economy and robust earnings will sustain the current bull market through 2027. During a discussion on November 3, 2026, the firm noted a growing investment shift toward U.S. industrial infrastructure, specifically targeting transmission lines and water systems.

While the outlook remains positive for the near term, analysts warned of increased market volatility by 2028, citing concerns over the federal budget deficit. They also observed that many clients maintain heavy exposure to the global AI ecosystem, particularly within markets in South Korea and Taiwan.

Regarding monetary policy, the firm expects the Federal Reserve System to implement interest rate hikes in December 2026 and March 2027. This shift toward normalizing the cost of capital represents a departure from previous market expectations that had anticipated rate cuts in 2025.