Market Updates
February 10, 2020
Many investors have questioned whether this market is similar to that of the late 1990s, but there are some key differences; the United Kingdom formally leaves the European Union; a look at governance in the MSCI Emerging Markets Index.
February 3, 2020
There are some early signs that the reflation process is starting to bear fruit, the world’s largest and most important bilateral commercial relationship remains under considerable strain due to rising U.S.-EU trade tensions and the outbreak of the Wuhan coronavirus produced a risk-off reaction.
January 27, 2020
We see U.S. business investment growing in the low-to-mid single digits in 2020, explore the significance of the U.S. as an “economic silverback”—the older and dominate economic power of the planet, and cite long-term factors supporting gold as a portfolio diversifier.
January 21, 2020
We examine why traditional equity valuation metrics have trended higher in recent decades, study the impact of global consumer spending on the economy, and consider the risk of negative corporate bond returns.
January 13, 2020
Catalysts in Focus for 2020
The powerful rally in equities to close out 2019 was a mirror
image to the precipitous selloff to end 2018. Headwinds ranging from
tight monetary policy, to fears of an earnings recession, to trade
uncertainty and slower global growth all began to fade as U.S.
equities rallied to new all-time highs in what was the strongest year
for the S&P 500 since 2013. While we remain bullish, there are
plenty of catalysts this year that could create risk to the upside or
downside. Here we outline some of the major catalysts for investors to watch.
All data, projections and opinions are as of the date of this report and subject to change.
This material was prepared by the Chief Investment Office (CIO) and is not a publication of BofA Global Research. The views expressed are those of the CIO only and are subject to change. This information should not be construed as investment advice. It is presented for information purposes only and is not intended to be either a specific offer by any Merrill or Bank of America entity 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.
Global Wealth & Investment Management (GWIM) is a division of Bank of America Corporation. The CIO, which provides investment strategies, due diligence, portfolio construction guidance and wealth management solutions for GWIM clients, is part of the Investment Solutions Group (ISG) of GWIM.
Investing involves risk, including the possible loss of principal. Past performace is no huarantee of future results.
All recommendations must be considered in the context of an individual investor’s goals, time horizon, liquidity needs and risk tolerance. Not all recommendations will be suitable for all investors.
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. Bonds are subject to interest rate, inflation and credit risks. Treasury bills are less volatile than longer-term fixed income securities and are guaranteed as to timely payment of principal and interest by the U.S. government. Investments in foreign securities (including ADRs) involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.
