GWIM Cash Allocation as % Asset Under Management BofA’s private clients have decreased their cash allocation, which is still below the long-term average, while increasing their equity exposure. Image: BofA Global Investment Strategy
Ranked Cross Asset Returns by Year Currently, gold is the top performer of 2024. Should investors consider buying gold in light of central banks’ actions? Image: BofA Global Investment Strategy Click the Image to Enlarge
GWIM Equity Allocation as % Assets Under Management BofA’s private clients are optimistic about equity market growth and potential returns, as evidenced by their allocation of 62% of their portfolios to equities. Image: BofA Global Investment Strategy
Equity Share of Household Financial Assets Cultural attitudes towards savings, structural differences in pension systems, and a preference for liquidity contribute to lower stock ownership rates among European households compared to their U.S. counterparts. Image: Goldman Sachs Global Investment Research
U.S. Households Allocation to Corporate Equities as a % of Financial Assets Historically, periods of high household equity allocation have been followed by lower market returns, suggesting that current trends may signal potential risks for future investors. Image: MarketDesk Research
All Money Market Funds Total Net Assets Investors currently hold $6.22 trillion in money market funds, a figure that is being interpreted as contrarian bullish for the stock market. Image: BofA Global Research
Buybacks – S&P 500 Cash as % of Total Asset As S&P 500 companies’ cash reserves decline, Bank of America expects buybacks to peak soon. Image: BofA US Equity & Quant Strategy
U.S. Private Sector Financial Assets % of GDP The growing disconnect between U.S. financial asset values and GDP raises concerns about the widening wealth gap, potential systemic risks, economic instability, and policy challenges. Image: BofA Global Investment Strategy
Probability of U.S. Recession As Priced Across Asset Classes The S&P 500 suggests a 26% probability of a recession in the United States, reflecting some concerns among investors. Analysts often use the current percentage change in the S&P 500 index to gauge the likelihood of an impending U.S. recession, given historical trends. On average, the…
U.S. Household Liquid Assets The amount of cash held by households in the United States has surged to an unprecedented level of $18 trillion, representing a significant increase from previous years. Image: BofA Research Investment Committee