Capital Market Outlook
October 10, 2023
IN THIS ISSUE
- Macro Strategy — Geography Matters — China: We look at these geographical features as they relate to China's economic growth potential.
- Market View — “Higher-for-Longer" Goes Beyond Interest Rates: What Investors Need to Know: Factors may be applicable to a number of key variables that will shape the investment landscape over the medium term.
- Thought of the Week — Equities Yield A New Concern: Q4 focus is on the reality explicitly presented at the last Federal Reserve meeting: Interest rates are likely to remain higher for longer.
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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.