Relative Price of Real Assets vs. Financial Assets and U.S. CPI Inflation Real assets tend to move in line with inflation and generally performs well in inflationary environments. Image: BofA Global Investment Strategy
Fed Funds and NFIB Jobs Hard to Fill Is the Federal Reserve behind the curve? Image: BofA Global Investment Strategy
Greatest Annual Flows Biggest inflows into TIPS and financials this year, as the Fed lets the U.S. economy run hot. Image: BofA Global Investment Strategy
Cycle – U.S. Regime Indicator According to BofA, the current mid-cycle could extend at least into the summer and potentially beyond. Image: BofA US Equity & Quant Strategy
U.S. Auto and Housing Sales Signs of a strong recovery in U.S. auto and housing sales are evident. Image: BofA Global Investment Strategy
Current Value Cycle vs. Historic Value Cycles Historically, Value cycle tends to last 33 months and Value tends to outperform Growth by about 60% on average. Image: BofA US Equity & Quant Strategy
Growth vs. Value – Based Relative Median Price to Forward Earnings Ratio Growth continues to trade above its historical average vs. Value. Image: BofA US Equity & Quant Strategy
Gold Minus Oil Annual Net Return The cyclical oil outperformance vs. gold is the largest since 1978. Image: BofA Global Investment Strategy
Estimated S&P 500 2022 Earnings Impact Based on 25% Tax Rate Have markets priced in Biden’s tax hikes? Image: BofA US Equity & Quant Strategy
Emerging Market Stocks – EM Consumer Discretionary + Tech vs. EM Energy + Materials This chart highlights the secular rotation from healthcare/tech to energy/financials. Image: BofA Global Investment Strategy
Tech Stocks – Central Bank Balance Sheet vs. Big Tech Market Capitalization Are markets too optimistic about Fed tapering? Image: BofA Global Investment Strategy