Capital Market Outlook

June 28, 2021

IN THIS ISSUE

Macro Strategy — The Horse is Out of the Barn: The real question for investors is how much their money will be worth after this “transitory" inflation is over.
Global Market View — Betting on the Joneses: Next to fully appreciate will likely be the most pandemic-constrained categories led by a higher-income consumer and helping to benefit consumer cyclicals.
Thought of the Week — The Divergence between Stock Prices and Bond Yields: Stocks may be supported by corporate earnings, while bond yields pressured lower by declining inflation expectations.

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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