Bank of America lays out 3 stock-trading strategies investors should deploy as slowing corporate earnings growth reshuffles the market's winners and losers

Main Idea: Bank of America Securities says slowing earnings growth and rising inflation could shift market winners toward financials, materials, and energy while hurting consumer discretionary and technology stocks.

Key Points:

• Bank of America Securities warned that tax risks, high valuations, and inflation may squeeze corporate earnings.
• The bank lowered consumer discretionary to underweight and said rising wages are a risk for that sector.
• Technology ranked at the bottom of BofA's quant screen, which the bank says has often led to weak short-term returns.
• BofA advised investors to favor high-quality stocks, which it says are trading at a large discount and could gain if the Federal Reserve starts tapering bond buying.