Category: Blog

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

U.S. Coporate vs. Government Bond Returns Since March 2020, U.S. corporate bonds have significantly outperformed government bonds. Will this trend continue in the coming months? Image: BofA Global Investment Strategy

Valuation – Real Assets vs. Financial Assets The price of real assets relative to financial assets being very low suggests that investors should consider owning more real assets, such as real estate and precious metals. Image: BofA Global Research

Real GDP and Inflation The U.S. economy has avoided recessions and stagflations 90% of the time, inspiring confidence in investors and showcasing the country’s commitment to long-term economic stability and growth. Image: BofA US Equity & Quant Strategy

Market Breadth – Percentage of MSCI AC World Stocks Above 200-Day Moving Average The decline in prices and selling pressure in April did not have a negative impact on the breadth of the market. Image: BofA Predictive Analytics

Inequality – Distribution of Stock Ownership Stock ownership in the United States is concentrated among the top 10% of Americans, who own almost 90% of the stocks. Image: Real Investment Advice

Japan Stocks vs. China Stocks Despite economic challenges and geopolitical risks, Chinese equities have rallied over the past 3 months. Image: BofA Global Investment Strategy

S&P 500 3-Month Seasonal Returns and Presidential Cycle Year 4 June to August historically shines during election years, as it represents the strongest 3-month period in the fourth year of the presidential cycle, up 75% of the time with an average return of 7.27% since 1928. Image: BofA Global Research

S&P 500 Earnings Estimate Revision Ratio The S&P 500 earnings estimate revision ratio has shown significant improvement, reflecting positive trends in earnings and expectations. Image: BofA US Equity & Quant Strategy

Fed Funds Rate Expectations Despite the initial anticipation of multiple rate cuts in 2024 as suggested by the Fed’s “dot plot,” the current market sentiment indicates a more reserved outlook, with fewer rate cuts in 2024. Image: BofA Global Investment Strategy

Measures of U.S. Underlying Inflation BofA expects a first rate cut in December 2024 due to the stickiness of U.S. underlying inflation. Image: BofA Global Research