Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks BofA’s corporate clients have been accelerating their stock buyback activity, surpassing the overall trend of S&P 500 buybacks. This defies recession fears and reflects confidence in companies’ future growth potential. Image: BofA Securities
Corporate Clients – Buybacks (4-Week Average) The strong buyback activity by BofA’s corporate clients, which exceeds historical averages, is expected to be viewed positively by investors, signaling confidence in the companies’ future growth prospects. Image: BofA Securities
Share of U.S. Corporate Profits from Foreign Markets Foreign markets, including emerging markets, significantly contribute to the profits of U.S. corporations. Specifically, they account for 16% of U.S. corporate profits, with emerging markets making up 4% of these profits. Image: Goldman Sachs Global Investment Research
U.S. Investement Grade Corporate Bond Spreads Will U.S. Investment Grade corporate bond spreads remain unchanged for an extended period? Image: BofA Global Investment Strategy
Corporate Client Buybacks as a % of S&P 500 Market Capitalization The stock buyback activity among BofA’s corporate clients in 4Q23 is currently trending at its highest level since 2019, which is widely seen as a positive sign for the market. Image: BofA Securities
Return – U.S. Corporate Bonds Corporate bonds have produced low annualized returns over the past 10 years. Image: BofA Global Investment Strategy
Spread Between BBB-Rated Corporate Bond Yield and 90-Day U.S. Treasury Bill Yield As Warren Buffett once said, “be fearful when others are greedy and greedy when others are fearful.” Image: BofA Global Investment Strategy
ISM Composite Index vs. Corporate Profits The decline in the ISM Composite Index indicates a weakening of the U.S. economy, which could lead to lower corporate profits. Image: Merrill Lynch Wealth Management
FMS Investors – Net % Say Corporate Earnings Will Improve vs. S&P 500 Consensus Forward EPS Will analysts continue to lower S&P 500 earnings estimates? Image: BofA Global Fund Manager Survey
Corporate Profits After Tax vs. S&P 500 The gap between the S&P 500 and corporate profits after tax remains wide. Has the S&P 500 more room to fall? Image: Real Investment Advice