U.S. CPI Inflation The BofA Credit Manager Survey indicates that 50% of respondents expect balanced U.S. inflation risks for the remainder of 2024, which can have implications for investment and risk management strategies in the coming months. Image: BofA US Creditor Investor Survey
High-Yield Bonds vs. 200-Day Moving Average In search of higher returns, investors have been pursuing riskier investments through high yield bonds. While this strategy can be rewarding, it also exposes them to increased vulnerability if market conditions worsen. Image: BofA Global Investment Strategy
FMS Investors – Net % Expecting Lower Long-Term Rates Only 38% of FMS investors expect bond yields to decrease, while the majority anticipate stable or potentially higher bond yields. Image: BofA Global Fund Manager Survey
Stocks – S&P 500 Growth ETF Despite their previous momentum, U.S. growth stocks are currently facing challenges in reaching new highs. Image: BofA Global Investment Strategy
Gold Price vs. S&P 500 Index and Recessions Throughout history, gold has been considered a safe haven during market declines. Since 2015, its correlation with U.S. stocks has strengthened, making it more likely for gold to move in sync with U.S. stocks during market downturns. Image: Real Investment Advice
FMS Investors – Net % Saying Recession Likely The outlook among FMS investors regarding the possibility of a global recession in the near future is characterized by a much greater sense of optimism. Image: BofA Global Fund Manager Survey
S&P 500 After Positive YoY 12 Months in a Row When the S&P 500 is positive YoY 12 months in a row, the next 12 months tend to be bullish, with a median return of 9.5% since 1950. Image: Carson Investment Research
Commodities – FMS Global Commodity FMS investors have become more optimistic on commodities in April, contributing to a record monthly increase in commodities allocation. Image: BofA Global Fund Manager Survey
FMS Investors – Net % Saying Gold Overvalued According to FMS investors, gold is currently considered the most overvalued since August 2020, raising concerns about a potential market bubble. Image: BofA Global Fund Manager Survey
Interest Rates – U.S. Federal Funds Rate Expectations BofA expects a 3.5-3.75% terminal rate in this cutting cycle, up 50bp from their previous forecast. This suggests a need to tighten monetary policy to control inflation and maintain economic balance. Image: BofA Global Research
S&P 500 Index Returns In April Since 2000, the second half of April has generally shown strong performance for U.S. stocks. Image: Carson Investment Research