Market Updates
April 12, 2021
A high correlation with inflation favors energy stocks as potential defense against the declining value of money. The geopolitics of U.S.-China relations remain key to market expectations and returns. American Exceptionalism, with a Caveat.
April 5, 2021
In our view a clear-eyed understanding of the bull and the bear cases may aid key portfolio decisions. After the Suez Saga: Implications for a Globalized Economic System. What Divergent Transatlantic Growth Means for U.S. Investors.
March 29, 2021
If nominal growth continues to move higher, zero interest rates could become more stimulative and inconsistent with well-anchored inflation expectations. We’ve drafted our four picks we suspect will likely provide support to markets and the economy over the year. Renewables have the power for a comeback.
March 22, 2021
The dollar has near-term support but the fiscal debt binge raises some concerns in the absence of fiscal discipline for the longer-term. April 2022: A glimpse of the post-pandemic world. Value’s Comeback Story.
March 15, 2021
The sharp rise in long-term interest rates has caused the S&P 500 index rally to pause while portfolios position for a higher growth and inflation outlook. How markets have moved since the start of the coronavirus outbreak. Is Bond/stock correlation unlikely to remain positive on a long-term basis?
March 8, 2021
Despite long-term demographic challenges, the rising millennial generation should support economic growth and inflation. The coming super-cycle in infrastructure spending. Integrating a gender mandate into investments is more timely than ever.
March 1, 2021
Japanese Equities: Unloved and Under-owned. “Sell the News": Fourth-Quarter Earnings Review. And investors are beginning to evaluate whether higher and steeper yields might impede the attractiveness of stocks.
Important Disclosures
All data, projections and opinions are as of the date of the report and subject to change.
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.
Bank of America, Merrill, their affiliates, and advisors do not provide legal, tax, or accounting advice. Clients should consult their legal and/or tax advisors before making any financial decisions.
Investing involves risk, including the possible loss of principal. Past performace is no guarantee 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 in the best interest of 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.
