Capital Market Outlook
October 26, 2020
IN THIS ISSUE
- Macro Strategy — The Fed's Poker Face —The Fed may welcome an inflationary shock over the next few years if it serves to reinforce inflation expectations.
- Global Market View — Buy the C.H.I.Ps on the Dips — We believe that investors should think long-term and opportunistically leverage market pullbacks in the weeks ahead on Cybersecurity, Healthtech, Infrastructure and Platform economy (C.H.I.Ps).
- Thought of the Week — The Light At The End Of The Tunnel For Earnings And Valuations? — The trough in corporate earnings growth may be behind us, and certain valuation multiples appear primed to compress a bit as Q3 profits pick up and future expectations gather steam.
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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