Corporate Clients – Buybacks (4-Week Average) The strong buyback activity from BofA’s corporate clients, exceeding historical averages, is a positive signal for investors, indicating confidence in future growth prospects. Image: BofA Securities
Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks Stock buybacks by BofA’s corporate clients, which exceed the overall trend of S&P 500 buybacks, indicate a positive outlook for investors, defying recession fears while reflecting confidence in future growth potential. Image: BofA Securities
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
United States Corporate Income Tax Rate The corporate tax rate may become a pivotal issue in the 2024 U.S. presidential election, as the two main candidates propose vastly different approaches that could significantly impact the future of corporate taxation. Image: Gavekal, Macrobond
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