Interest Rates – Fed Funds Futures Curve Could investors be potentially dealing with the prospect of enduring higher interest rates for an extended period? And how might this impact the pricing of risk assets and investor sentiment? Image: The Daily Shot
Long-term Growth Rates vs. Forward 12-Month Returns of the S&P 500 Low long-term earnings growth tends to be bullish for the S&P 500, suggesting potential price returns of around +25% over the next 12 months. Image: BofA Global Investment Strategy
When Will the Fed First Cut Interest Rates? Will the Federal Reserve cut interest rates in the second quarter of 2024? Image: BofA Global Fund Manager Survey
U.S. Dollar vs. Real Interest Rates Higher real interest rate differentials between the United States and the world are generally associated with a stronger U.S. dollar. Image: BCA Research
Interest Rates – Probability of Fed Rate Hike The likelihood of the Federal Reserve holding interest rates steady in September has increased. Image: The Daily Shot
S&P 500 vs. Interest Rates Currently overvalued U.S. stocks could be negatively impacted by a reversal in interest rates. Image: Real Investment Advice
FMS Investors – Net % Expecting Higher Global CPI vs. Net % Expecting Higher Short-Term Rates There are still big expectations for inflation to fall. Image: BofA Global Fund Manager Survey
Interest Rates – Cumulative Rate Cuts vs. Hikes There have been 470 interest rate hikes worldwide over the past two years. Image: BofA Global Investment Strategy
Developed Market Core Inflation Rates Despite efforts to combat inflation through various monetary policies, core inflation rates remain high in many developed markets. Image: BofA Global Investment Strategy
U.S. Real Rates U.S. real rates remain above the 20-year average. Image: J.P. Morgan