Performance – Regional Banks vs. Large Banks Would investors be better served by focusing on quality large bank names rather than trying to find value in the regional banking sector at this time? Image: BofA Global Investment Strategy
Implied Equity Allocation by Non-Bank Investors Globally Investors are currently overweight global equities, reflecting a risk-on strategy and positive economic outlook. Image: J.P. Morgan
Bank Loan Flows Bank loan funds saw the largest inflow in two months, reflecting the increasing confidence of investors. Image: BofA Global Investment Strategy
Performance – S&P Regional Banks Index vs. S&P 500 Regional banks and the equal-weighted S&P 500 have recently reached new relative lows, a concerning trend in the financial market. This trend is noteworthy given the recent S&P 500 performance. Image: Morgan Stanley Research
Interest Rates – Central Bank Policy Rate Hikes vs. Cuts Emerging market central banks typically take the lead in initiating monetary tightening and easing cycles. In 2024, their approach has shifted away from aggressive easing. Image: BofA Global Investment Strategy
Central Bank Gold Purchases Gold remains a key focus for central banks, as it serves to fortify the stability and resilience of their reserves, especially amidst economic turbulence or currency fluctuations. Image: Goldman Sachs Global Investment Research
Annual Changes in Central Bank Gold Reserves The significant increase in gold reserves by China, Poland, and Singapore in 2023 reflects a broader trend of central banks expanding their holdings of bullion amid escalating geopolitical and economic risks. Image: BofA Global Research
Central Banks Policy Rates Are global negative interest rates unlikely to be revisited soon, as many policymakers have concluded that they have not worked as intended? Image: Deutsche Bank
Monthly Number of Global Central Bank Rate Cuts In response to slowing inflation and the need to bolster economic growth, central banks around the globe are shifting towards a more accommodative monetary policy. Image: BofA Global Investment Strategy
Tech Stocks – G3 Central Bank Balance Sheet vs. Nasdaq 100 Will the divergence between central bank liquidity and tech stock performance continue through 2024? Image: BofA Global Investment Strategy