Capital Market Outlook

January 19, 2021

IN THIS ISSUE

Macro Strategy — Growing Evidence of Reflation Success: Inflation is likely to mostly remain contained however upside risks to inflation have increased.
Global Market View — Affluent Consumers’ Pent-Up Demand to Drive Spending in 2021: Upside surprises to the level of consumer spending and earnings should continue to support equities into 2021.
Thought of the Week — A Variety of Factors Are Manufacturing Bullishness for Industrials: We have become more constructive on the Industrial sector, which may stand poised to benefit.

Important Disclosures

All data, projections and opinions are as of the date of this report and subject to change.

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.

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