Capital Market Outlook
March 29, 2021
IN THIS ISSUE
- Macro Strategy — Helicopter Money Delivers Escape Velocity: If nominal growth continues to move higher and higher, zero interest rates could become more and more stimulative and inconsistent with well-anchored inflation expectations.
- Global Market View — Four Supports for 2021: Consumer, Vaccines, CAPEX and Policy: We’ve drafted our four picks that we suspect will likely provide support to markets and the economy over the balance of the year, with the greatest potential upside surprises around the 1. consumer recovery, 2. capital expenditures (CAPEX) outlook, 3. ongoing coronavirus vaccine rollout, and 4. supportive monetary and fiscal policy. The confluence of these factors underpins our outlook— and while certainly not our base case, we’ve included some potential upsets to each pick.
- Thought of the Week — Renewables have the Power for a Comeback: Headwinds for renewables could prove to be transitory in light of longer-term supportive trends.
Important Disclosures
All data, projections and opinions are as of the date of this report and subject to change.
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.
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