Capital Market Outlook
February 13, 2023
IN THIS ISSUE
- Macro Strategy — How Golden Is the Cross?: The cyclical macro backdrop prevents us from getting more excited about the golden cross.
- Market View — Eyes Wide Open: Long Defense: The protracted Ukraine/Russia conflict and heightened geopolitical risks serve as a wild card to asset prices and the global economic outlook.
- Thought of the Week — Golden Cross, Golden Bull?: The last few weeks have led investors to wonder whether the bear market has veered and if a new bull market may be charging forward.
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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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.