[Bank of America: The S&P 500 Index will bring an annualized loss of 3% in the next ten years] On September 1, ET, Bank of America informed clients in its latest report on Monday, Eastern Time, that its market alert signal has turned from red to yellow, meaning that U.S. stocks have withdrawn from the so-called "bear market warning area," although the bank still reminds U.S. stocks that there are ongoing risks in valuation and credit. At the end of May this year, 70% of Bank of America's bear market signal indicators had been triggered. According to historical standards, this means that U.S. stocks have entered the red alert zone. Savita Subramanian, a strategist at Bank of America, said in a report that the forward price-to-earnings ratio of the S&P 500 Index has compressed from 22 times at the beginning of the year to 20 times, and "for good reason" - because the profit growth rate of U.S. stock companies outperformed their stock prices. But even this is not enough to support the long-term bullish outlook for U.S. stocks; the bank's model shows that the S&P 500 Index will bring an annualized loss of 3% over the next ten years. In terms of position allocation, the bank favors large-cap value stocks as ballast, focusing on the oil and gas, metals and mining, banking and insurance sectors. It also warned investors to avoid value traps such as media and IT services, whose stock prices have fallen faster than earnings forecasts have been revised downwards.