Be bullish: Consider investing in tomorrow’s opportunities today

2022 has been a difficult year for many investors, notes Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank. The almost daily volatility in financial markets has made it challenging to maintain a longer-term perspective.

In the video below, Hyzy explains the importance of staying focused on the bigger picture – and why now is the time to prepare for the opportunities he believes will emerge as a new era of innovation and economic growth take hold. “Thinking strategically now,” Hyzy adds, “rather than after the economy turns the corner into this new era, could increase your potential benefit.”

Please read important information at the end of this program. Recorded on 10/05/2022.

Sometimes, the hardest thing for any investor to do is to look beyond the present moment and plan for the future. We believe doing just that is essential to your long-term success.

Hello, I’m Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank.

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Chris Hyzy

Chief Investment Officer

Merrill and Bank of American Private Bank

We know this has been a difficult year for many investors. You’ve endured daily market volatility, watched your portfolio fluctuate, and worried about the impact of everything from rising interest rates and inflation to the conflict in Ukraine.

Through it all, the Chief Investment Office has worked to keep you posted in real time on each development. And we’ll continue sharing our best thinking on short-term market forces and portfolio adjustments to consider as conditions evolve.

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Our key piece of advice for investors today:

Don’t miss the forest for the trees.

But there’s one piece of advice above all others that we hope you’ll take to heart:

Don’t miss the forest for the trees. While it’s natural to feel uneasy, investors who focus too heavily on daily volatility may miss opportunities to prepare for a time of extraordinary innovation and prosperity that we feel strongly is just ahead.

That’s not rose-colored glasses. We at the Chief Investment Office, along with our colleagues at BofA Global Research, spend much of our time looking deeply into relevant data, looking for what the past and the present may tell us about the future.

As unique as today’s challenges feel, the fact is we’ve been tested many times before. Throughout the twentieth and twenty-first centuries, the periods of greatest stress and turmoil—from world wars to global pandemics to economic crises—have been followed by years of profound economic resilience and market gains.

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Long-term investors have fared better

One-day timeframe:

· Chance of losing money is about 46%*

10-year timeframe:

· Probability of losing money declines to just 6%*

*Probability of negative returns, based on S&P 500 total returns from 1929-Feb. 2022

Source: U.S. Equity & Quantitative Strategy, BofA Global Research; S&P; Bloomberg

Past performance is no guarantee of future results. It is not possible to invest in an index.

History also tells us that long-term investors fare better than those who dart in and out on a daily basis. Since 1929, the chance of a stock investment going down on a given day stands at about 46%, basically a coin toss. Stay invested for a decade and that of chance of losses drops to about 6%.

We believe the economy is currently in a “reset” period, preparing to unleash world-changing innovations in areas such as…

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Potential world-changing innovations…

· Automation

· Digitalization

· Healthcare

· Transition to a greener future

… automation, digitalization, healthcare and the transition to a greener future.

In fact, the roots of these changes have already taken hold, propelled in many ways by the very stresses causing today’s turmoil.

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…Could lead to new investment opportunities

· Medical equipment & Telehealth

· Artificial intelligence

· Communications

· Industrials

· Transportation

· And more…

These broad themes may generate opportunities in medical equipment and telehealth, artificial intelligence, communications, industrials and transportation, and more.

Thinking strategically now, rather than after the economy turns the corner into this new era, could increase your potential benefit as these industries transform.

We hope you’ll review some of our insights on these exciting developments. Then pause, take a breather, try to turn away from that newsfeed, and have a conversation with your advisor about the ways to prepare your portfolio for the years ahead.

Thanks very much.

Important Disclosures

The opinions expressed are as of the date of this video and are subject to change.

Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results. It is not possible to invest in an index.

This material does not take into account a client’s particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. It is important to understand the differences, particularly when determining which service or services to select. For more information about these services and their differences, speak with your advisor.

Bank of America, Merrill, their affiliates, and advisors do not provide legal, tax, or accounting advice. Clients should consult their legal and/or tax advisors before making any financial decisions.

This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).

BofA Global Research is research produced by BofA Securities, Inc. (“BofAS”) and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC and wholly owned subsidiary of BofA Corp.

Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.

Merrill makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of BofA Corp. MLPF&S is a registered broker‐dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.

Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill’s obligations will differ among these services. Investments involve risk, including the possible lo ss of principal investment.

The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC and other affiliated banks.

Bank of America Private Bank is a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of BofA Corp. Trust and fiduciary services are provided by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A.

Retirement and Personal Wealth Solutions is the institutional retirement business of BofA Corp. operating under the name “Bank of America.”

Investment products:

Are Not FDIC Insured

Are Not Bank Guaranteed

May Lose Value

For additional insights from the Chief Investment Office, read the report “Seeing the Forest for the Trees: Investing for the Future” and also the article “Why we’re bullish on the future.”