1 Bloomberg,. Data reflects total returns from December 31, 2012 to December 31, 2022.
3 S&P Dow Jones Indices, S&P 500 Fact Sheet, as of Feb. 28, 2023.
4 Bloomberg. Data as of March 21.2023.
5 “2021 Corporate Longevity Forecast,” Innosight, May 2021
6 Bloomberg. Data as of March 21, 2023.
Opinions are as of the date of this article and are subject to change.
Investing involves risk including possible loss of principal. Past performance is no guarantee of future results.
Indices are used for illustrative purposes only, are unmanaged, include the reinvestment of dividends, do not reflect the impact of management or performance fees. Indices do not represent actual individual accounts. One cannot invest directly in an index.
Dividend payments are not guaranteed, and are paid only when declared by an issuer’s board of directors. The amount of a dividend payment, if any, can vary over time.
Companies may reduce or eliminate dividend payment to shareholders.
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.”).
Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.
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. Stocks of small-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Bonds are subject to interest rate, inflation and credit risks. Treasury bills are less volatile than longer-term fixed income securities and are guaranteed as to timely payment of principal and interest by the U.S. government. Investments in foreign securities (including ADRs) involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.