Capital Market Outlook
June 8, 2020
IN THIS ISSUE
- Macro Strategy— Conditions In Place For A Potentially Strong Global Expansion — Global risk assets had been rallying hard, especially those more correlated with solid economic expansions.
- Global Market View— Renewing R&D's Role in the Global Economy — We expect to see a renewed focus on R&D by governments and businesses, as countries favor autonomy in the production of critical goods, and as the race for technological leadership in many key industries accelerate.
- Thought of the Week— An Update On Small-Cap Equities — Small caps are likely to be supported in the near term by an improvement in the economic data but still face headwinds from higher leverage, shorter debt maturities and non-earners.
Important Disclosures
All data, projections and opinions are as of the date of this report and subject to change.
This material was prepared by the Chief Investment Office (CIO) and is not a publication of BofA Global Research. The views expressed are those of the CIO only and are subject to change. This information should not be construed as investment advice. It is presented for information purposes only and is not intended to be either a specific offer by any Merrill or Bank of America entity 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.
Global Wealth & Investment Management (GWIM) is a division of Bank of America Corporation. The Chief Investment Office, which provides investment strategies, due diligence, portfolio construction guidance and wealth management solutions for GWIM clients, is part of the Investment Solutions Group (ISG) of GWIM.
Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
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 suitable for all investors.
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.
