ISABELNET Cartoon of the Day Ignoring climate risks in your financial strategy is like leaving your umbrella at home on a cloudy day—you might be fine for a while, but you’ll regret it when the storm hits! Have a Great Day, Everyone! 😎
ISABELNET Cartoon of the Day New Year’s Resolution: Will you follow the bull or the bear? As we enter the new year, it’s crucial to establish a clear investment strategy, no matter if you’re feeling bullish or bearish. Happy Investing in 2025, Everyone! 😎
Return – Dow Jones U.S. Thematic Market Neutral Momentum Index With a remarkable 31% return in 2024, momentum investing has emerged as a standout equity strategy, poised for its best year since 2002. Image: Bloomberg
Interest Rates – Implied Fed Funds Target Rate The Fed is likely to cut rates by 25 basis points today, but projections for 2025 indicate a more gradual easing strategy, aiming to boost the economy while keeping inflation in check. Image: Bloomberg
GWIM 4-Week ETF Flows as % of AUM BofA’s private clients have been buying municipals, dividend, utilities ETFs, and selling energy, EM debt, low-vol ETFs over the past four weeks. Image: BofA Global Investment Strategy
S&P 500 EPS – Potential U.S. Tax Impact on Earnings Per Share Donald Trump’s plan to cut the U.S. corporate tax rate from 21% to 15% could significantly impact S&P 500 earnings per share, potentially increasing EPS by 4% and improving profitability for many companies in the index. Image: BofA US Equity & Quant Strategy
Ranked Cross Asset Returns by Year Gold’s remarkable performance in 2024 is largely due to strong central bank purchases, its established reputation as a safe haven during uncertain times, and its effectiveness as an inflation hedge. Image: BofA Global Investment Strategy Click the Image to Enlarge
IG Bond Flows Investment-grade corporate bond funds continue to attract investors, resulting in the biggest 5-week inflow. Image: BofA Global Investment Strategy
China Equity Flows While the initial surge in inflows reflected optimism about China’s economic recovery, subsequent outflows highlight the fragility of market sentiment amidst ongoing economic challenges. Image: BofA Global Investment Strategy
Tech Flows Tech funds experienced their largest outflow since June 2024, marking a significant shift for the sector that had previously enjoyed positive momentum. Image: BofA Global Investment Strategy
Treasuries Flows BofA’s private clients are increasingly favoring U.S. Treasuries, particularly those with maturities between 2 to 10 years, as they anticipate a decline in yields in the near future. Image: BofA Global Investment Strategy