Capital Market Outlook
April 17, 2023
IN THIS ISSUE
- Macro Strategy — Housing Stocks: Bear Market Rally Or A New Bull Market?: While there are positive fundamentals for the Housing sector longer term, we suspect another leg lower is likely in a recession.
- Market View — Still the King: Ten Questions & Answers on U.S. Dollar Hegemony: Factors could weigh on the dollar's attractiveness in the near term but over the long term, the world is glacially moving towards a multireserve currency world, with the dollar first among lesser equals.
- Thought of the Week — An Update on Small Business – Optimism Fading: Headwinds are intensifying for small businesses in light of recent macroeconomic volatility.
Opinions and data are as of the date of this report and are subject to change.
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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.").
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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. 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.