Capital Market Outlook
November 3, 2025
IN THIS ISSUE
- Macro Strategy — With a Little Help from our Friends: How the expected Boom in U.S. Foreign Investment Supports America’s Industrial Revival: As more foreign multinationals invest further in U.S. manufacturing and research & development, we expect tailwinds to productivity and domestic innovation and, by extension, U.S. economic growth and corporate earnings.
- Market View — Will the Artificial Intelligence Boom Deliver Stocks a “Three-peat”?: We expect Artificial Intelligence productivity gains to be similarly transformative for the economy over the next several years, supporting this bull market well into the second half of this decade.
- Thought of the Week — Blast from the Past? Not this Time: We see the potential for upside given resilient corporate earnings, easier monetary policy, recent softer-than-expected inflation data, the benefit of seasonality, and the start of a digital infrastructure buildout cycle.
Important Disclosures
Opinions and data are as of the date of this report and are subject to change.
Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
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.").
All recommendations must be considered in the context of an individual investor’s goals, time horizon, liquidity needs and risk tolerance. Not all recommendations will be in the best interest of all investors.
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.
