Capital Market Outlook
September 8, 2026
IN THIS ISSUE
- Macro Strategy – Commodities: From Inflation Hedge to Structural Growth Asset: Commodities are evolving into a strategic portfolio allocation, offering exposure to long-term growth themes such as Artificial Intelligence, electrification, and energy security while helping diversify portfolios amid potential supply constraints.
- Market View – Rising Global Interest Rates and International Markets So: Despite rising global bond yields and expectations for tighter policy in many developed markets, strong earnings and economic growth continue to support Equities, with Emerging Markets remaining preferred due to lower inflation, stable-to-easing rate outlooks, and stronger structural fundamentals.
- Thought of the Week – The One-Offs Inflating Q2 Earnings: Despite some one-time boosts to Q2 results, broad-based earnings growth, strong revenues, and resilient profit margins across most sectors continue to support Equities despite valuation and interest rate concerns.
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.