S&P 500 EPS Growth Consensus estimates suggest that 72% of S&P 500 companies are projected to report EPS growth in 3Q24, reflecting a broader trend of improving earnings outlooks across various sectors. Image: BofA US Equity & Quant Strategy
GWIM T-Bill Flows In light of the Fed’s recent rate cuts, BofA’s private clients are actively selling T-bills and strategically positioning themselves for potential gains in other asset classes. Image: BofA Global Investment Strategy
Emerging Market Equity Flows Emerging market equity funds have seen substantial outflows, highlighting the fragility of market sentiment amidst ongoing economic challenges. Image: BofA Global Investment Strategy
Flows to Japan Equities While Japanese equities have faced significant outflows recently due to shifting investor sentiment, underlying structural reforms and an evolving economic landscape may provide opportunities for recovery in the future. Image: BofA Global Investment Strategy
China GDP Growth Consensus Estimates GDP upgrades are likely to spur interest in China’s markets, encouraging asset allocation towards sectors that align with the country’s economic transformation. Image: BofA Global Investment Strategy
U.S. Nonfarm Payrolls vs. U.S. ISM Manufacturing PMI The U.S. ISM manufacturing index reading below 50 signals a contraction in manufacturing activity, which may impact payroll numbers. However, the relationship between the index and actual payroll figures is not straightforward. Image: BofA Global Investment Strategy
GWIM Debt Holdings as % of AUM Bank of America’s private clients maintain a low debt allocation of 20%, which remains significantly below the average level. Image: BofA Global Investment Strategy
S&P 500 Historical FY2 EPS Revisions vs. Consensus EPS Recent downward revisions in S&P 500 EPS estimates for 2024-25 reflect a cautious approach from analysts, primarily driven by economic uncertainties. Image: BofA US Equity & Quant Strategy
Spread Between BBB-Rated Corporate Bond Yield and 90-Day U.S. Treasury Bill Yield The recent increase in the spread between IG credit yield and cash yield marks a significant shift from a 43-year low. Should investors favor U.S. Treasury bills over IG bonds? Image: BofA Global Investment Strategy
GWIM Cash Allocation as % Asset Under Management BofA’s private clients have reduced their cash allocation, remaining below the long-term average, while increasing their equity exposure. Image: BofA Global Investment Strategy
GWIM Equity Allocation as % Assets Under Management BofA’s private clients show optimism about equity market growth and potential returns, as evidenced by their 63% portfolio allocation to equities. Image: BofA Global Investment Strategy