Warren Buffett's top investing advice is still valid but the S&P 500 is 'the worst thing to own' in the near term, says top US stock strategist

According to Bank of America Securities head of US equity and quantitative strategy, the S&P 500 is the worst thing to own in the current high inflation environment.

Average retail investors should invest in an index fund that tracks the S&P 500, according to Warren Buffet.

Hold the S&P 500 if you have a 10-year time horizon. The returns are likely to be in the single digits for the next 10 years. I don't think the bottom is in if you're thinking about the next 12 months.

She said that she likes the idea of buying and holding, but not everyone is done with it.

In the short term, there is better value to be found outside of the S&P 500, because small-cap stock benchmarks are pricing a deeper recession than she thinks.

What appears to be the beginning of a capital expenditure cycle could benefit the US economy.

The S&P 500 is very crowded. She said that while it might do well over the next 10 years, there is some potential for investors to have to sell the S.