Bank of America strategist believes that tech giants have fallen out of favor and is optimistic about mid-cap and small-cap stocks before the US midterm elections.

A Bank of America strategist said that as tech giants lose their appeal, small-cap and mid-cap stocks in the US are the best bets before the midterm elections. The team led by Michael Hartnett stated that President Trump's "aggressive intervention" measures to lower energy, healthcare, credit, housing, and electricity prices are putting pressure on industry sectors including energy giants, pharmaceutical companies, banks, and large tech firms. This has made small and mid-cap stocks the primary beneficiaries of this "prosperity" cycle before the midterm elections in the US. They wrote in their report: "We are bullish on the real economy and bearish on Wall Street until Trump's approval ratings rebound due to policies addressing cost of living issues."