Search Results for: strategy

Net Global Central Bank Hikes/Cuts Global central banks haven’t cut this much since the Great Financial Crisis. Image: BofA Merrill Lynch Global Investment Strategy

PCE Inflation vs. Output Gap (Leading Indicator) Positive output gap suggests higher core inflation next year. Image: NBF Economics and Strategy

Tech Fund Flows Are tech fund inflows indicating a potential bubble? Image: BofA Merrill Lynch Global Investment Strategy

Conference Board Confidence Index of CEO vs. U.S. Real Business Investment The trade war has no winners and could curtail U.S. business investment further. Image: NBF Economics and Strategy

Russell 2000 vs. Russell 1000 and Subsequent 10-Year Annualized Relative Returns Chart suggesting that small caps should outperform large caps over the next 10 years (R² = 0.42). Image: BofA Merrill Lynch US Equity & US Quant Strategy

U.S. Corporate Bond Ownership More than 25% of U.S. corporate bonds are held by insurance companies. Many investment grade investors are not allowed to hold junk-rated bonds. Any drop in the credit ratings could amplify the next recession. Image: NBF Economics and Strategy

U.S. Labor Market Chart suggesting that the U.S. labor market is still strong and healthy. Image: NBF Economics and Strategy

Debt to Net Worth Ratio for U.S. Households vs. Financial Obligations Ratio Chart suggesting that U.S. household finances are in good shape. This is good news for consumption spending, which accounts for about 70% of all U.S. economic activity. Image: NBF Economics and Strategy

S&P 500 Normalized P/E vs. Subsequent Annualized Returns Chart suggesting annual returns of around 5% over the next 10 years (R² = 0.79). Image: BofA Merrill Lynch US Equity & US Quant Strategy

S&P 500 2020 Target Models BofAML is bullish. The official S&P 500 2020 estimate is 3,300. Image: BofA Merrill Lynch US Equity & US Quant Strategy