Bank of America: If Trump intervenes in the economy to curb support rates, now may be a good opportunity to lay out mid-cap stocks.

Bank of America Merrill Lynch Securities pointed out that the intervention of the US President Trump in the economy may benefit mid-cap stocks with currently undervalued ratings. Strategist Michael Hartnett believes that Trump is likely to take intervention measures to curb the decline in his approval rating. He stated that the White House will intervene to prevent the consumer price index (CPI) annual inflation rate from reaching 4% and the unemployment rate from soaring to 5%. In this environment, Hartnett recommends buying mid-cap stocks with low valuations before 2026. Related mid-cap stock ETFs include: S&P Mid-Cap 400 Index ETF-SPDR (MDY.US), SPDR S&P 400 Mid Cap Growth ETF (MDYG.US), iShares Russell Mid-Cap ETF (IWR.US), S&P Mid-Cap Index ETF-iShares (IJH.US). He also pointed out that the "Big Seven" of the US stock market may "swallow up" the entire market value of the Small Cap 600 Index (SPSM.US) and the Mid Cap 400 Index (MDY.US). Other trading directions with the best relative upside potential include main sector sectors closely related to the real economy cycle, such as residential builders (XHB.US), retail industry (XRT.US), paper, transportation (XTN.US), and CareTrust REIT Inc (XLRE.US).