“AT A TIME OF FALLING INTEREST RATES and heavy investment in technology infrastructure,” says Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank, “the U.S. economy looks poised for a new phase of growth.” That optimistic view of what’s ahead in 2026 rests on a balance of both potential bright spots and risks, from fiscal stimulus and a more dovish Federal Reserve to a cooling labor market, the continuing creep of prices and worries over a market bubble tied to artificial intelligence (AI).
In the video above, Hyzy sits down with top analysts from BofA Global Research to help make sense of the year ahead for equity markets and the U.S. economy. “We see five tailwinds to U.S. GDP growth next year,” observes Aditya Bhave, senior U.S. economist at BofA Global Research.
According to Savita Subramanian, head of U.S. Equity and Quantitative Strategy, BofA Global Research, earnings are projected to do most of the heavy lifting, but risks such as sticky inflation and potential AI-driven bubbles could spark volatility. Watch the full conversation to learn how these insights can help position your portfolio for the year ahead.
For more year ahead insights, be sure to watch Powering up: What could drive the next era of growth?”, the Outlook 2026 webcast, and read “Outlook 2026: Could the market power into higher gear this year?”
IMPORTANT DISCLOSURES
The opinions expressed are as of 12/1/2025 and are subject to change.
Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.
This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
BofA Global Research is research produced by BofA Securities, Inc. (“BofAS”) and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC and wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
