BofA Strategist Warns Market Ignoring Risks as Valuations Hit Records, Risk Premium at 20-Year Low

According to BlockBeats, on July 24, BofA European equities strategist Sebastian Raedler warned that current market pricing is built entirely on a "perfect scenario" assumption, leaving investors exposed to unhedged risks. Raedler noted that expectations for profit margins and five-year forward earnings growth have reached historic highs, while the risk premium—a measure of risk appetite—has fallen to a 20-year low. He recommended investors exit overvalued cyclical sectors in favor of defensive stocks, particularly in healthcare and consumer staples.
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