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Market Updates
Your resource for the latest thinking from our experts on the markets and economy in the coming year and beyond
Strong Fundamentals Create Basis for Potential Strong Recovery
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Strong fundamentals create a basis for a potential strong recovery, the Federal Reserve has been up to the task, and all eyes are on King Dollar. |
Shock and Oil
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Consolidation and persistent volatility in the energy space should be expected; a look at previous bear markets; the attitude of U.S. consumers has darkened considerably. |
Market Volatility Update
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We believe we’re in a two-stage bottoming in equities; a “fiscal bazooka” is in early stages; investors shouldn’t lose sight of potential buying opportunities; housing can be an indicator. |
Damages, Responses and the Other Side
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We expect key catalysts for equity positioning will be manufacturing/export data, interest rates, policy responses and the dollar; downside risks have risen with the spread of Covid-19 outside China, and supply chains and manufacturing are disrupted, but there is also demand disruption. |
The Market Selloff in Perspective
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We offer our perspective on last week’s market selloff that comes amid fallout from Covid-19 virus outbreak, a recent improving trend for productivity, an apparently deteriorating global backdrop for U.S. foreign earnings and elevated volatility levels of measured risk. |
Can the U.S. avoid “Japanification”?
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We see a clear sign that inflation pressures are headed lower; owing to the Coronavirus, global policy makers have adopted a double-barreled response; given Europe’s tepid risk-taking culture and underdeveloped venture capital markets, the EU continues to lag the U.S. and Asia. |
Deflationary effects from the Coronavirus put the Fed back in play
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Positive incoming economic data so far this year have confirmed our belief that the path of least resistance for the U.S. economy would be up after the Fed cut interest rates and the effect of other central banks' rate cuts started to be felt around the world. The global economic surprise diffusion index has turned sharply positive, reflecting increasingly more upside surprises than downside surprises on the economic front worldwide in recent weeks.. |
Stocks Are Not Partying Like the Late 1990s
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Global equities ripped higher last year, powered by the S&P 500, which marked its strongest gain since 2013. Many investors have questioned whether this market is similar to that of the late 1990s, but there are some key differences. |
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All data, projections and opinions are as of the date of the 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.
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