Capital Market Outlook
October 2, 2023
IN THIS ISSUE
- Macro Strategy — Elevated Inflation Uncertainty A Persistent Headwind To Growth: A shock to uncertainty is estimated to have a significant negative effect on real economic variables.
- Market View — The Era Of Low Borrowing Costs May Be Over—But The Impact Of Near Zero Interest Rate Policies Is Here For Years To Come: The bite of higher interest rates is just beginning to be felt across private and public debt markets.
- Thought of the Week — No Government Shutdown but Still Maintaining a Wary Eye on Washington: While a U.S. government shutdown has been avoided for now, what's not avoidable is the challenging finances of the U.S. government.
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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.