Capital Market Outlook
November 2, 2020
IN THIS ISSUE
- Macro Strategy — Housing Boom Leads The Recovery — Credit spreads, overall financial-stress indicators, and the dollar have remained relatively tame, suggesting that the equity market is mainly consolidating its outsized gains since the pandemic trough while awaiting more clarity on the profits outlook.
- Global Market View — The Dualism of Market Fundamentals — In the backdrop of likely further choppy trading in the weeks ahead, we attempt to explore the dualism that exists within key fundamentals that should ultimately dictate where asset prices are a year from now.
- Thought of the Week — The Power of the Chinese Consumer — The future contours of global growth and global earnings are inextricably tied to emerging market consumer demand, notably demand from China whose middle class is on track to likely spend an amount head and shoulders above the middle class spending in the U.S. this year.
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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