[Music plays through opening animation of a telescope pointing into the sky at dusk]
On screen copy:
2026 YEAR AHEAD OUTLOOK
Powering up:
What could drive the next era of growth?
On screen disclosures:
Please read important information at the end of this program. Recorded on 11/06/2025 and 11/17/2025.
[Chris Hyzy appears on screen]
Chris Hyzy:
Hello and welcome to our 2026 Year Ahead Outlook.
On screen copy:
2026 YEAR AHEAD OUTLOOK
Powering up:
What could drive the next era of growth?
Chris Hyzy:
We're calling this program, "Powering up: What could drive the next era of growth?"
On screen copy:
Chris Hyzy
Chief Investment Officer
Merrill and Bank of America Private Bank
Chris Hyzy:
I'm Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank.
On screen copy:
Potential new phase of growth
- Artificial intelligence (AI) innovation
- Infrastructure investment
- Energy transformation
- Global shifts in defense and tech
Chris Hyzy:
As we look ahead, we see the potential for a new phase of economic and market growth, powered by AI innovation, infrastructure investment, energy transformation, and global shifts in defense and technology.
On screen copy:
Potential risks in 2026
- Geopolitical tensions
- Inflation
- Equity valuations
- Concerns over AI bubble
Chris Hyzy:
Yes, there are risks. Geopolitical tensions, inflations, equity valuations and concerns about an AI bubble.
On screen copy:
Strong underlying fundamentals
- Capital spending on AI and data centers
- Corporate earnings continue to surprise
- Resiliency of U.S. consumers
- Rotation into equities
Chris Hyzy:
But we believe the underlying fundamentals are strong. Capital spending on AI and data infrastructure is accelerating, corporate earnings continue to surprise, U.S. consumers remain resilient, and investors are beginning to rotate back into equities with record cash still on the sidelines.
In this program, I'll be joined by leading analysts to explore what's ahead, from policy and macro trends to key investment themes and how to position your portfolio for the opportunities and challenges of the year ahead.
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On screen copy:
2026 YEAR AHEAD OUTLOOK
Panelists
Chris Hyzy
Haim Israel
[headshots of panelists appear]
Chris Hyzy:
We'll start with Haim Israel, head of Thematic Investing for BofA Global Research, to unpack the forces reshaping the global economy, and how "Transition Investing" can help you prepare.
On screen copy:
Marci McGregor
Matthew Diczok
Joe Quinlan
[headshots of panelists appear]
Chris Hyzy:
Then, I'll sit down with Marci McGregor, Matthew Diczok and Joe Quinlan from our Chief Investment Office. They'll share insights on markets, asset classes and practical ideas for your portfolio in 2026.
Let's begin with my conversation with Haim Israel.
[Video screen transitions with a fade, filling the screen with white]
[Chris Hyzy and Haim Israel appear on screen, split side by side in a virtual meeting format.]
Haim, thanks for joining me today. Great to have you here as part of our 2026 Outlook program. We're calling this year's webcast, "Powering up: What could drive the next era of growth?"
On screen copy:
ABC's of Transition Investing
- Adaption and resiliency
- Built infrastructure and resources
- Clean energy
- Digital and human capital
- Enabling finance
Chris Hyzy:
Now recently you've honed in on five major themes you call the ABCs of Transition investing, which is a framework that helps investors understand and approach these changes in a much more structured way.
Haim Israel:
Pleasure to be here, Chris. Yes. The world is changing. The world is changing very fast.
On screen copy:
Haim Israel
Head of Global Thematic Investing
BofA Global Research
Haim Israel:
We're in the middle of a tech revolution, something that we've never, ever seen in the past. We need more resources, geopolitical implications left and right. Things are accelerating very fast. As a result, we think we need to start talking about transition and solution. We need to start adapting into the new world because the new world is changing so fast. Most important, when we add up all of our different needs, our risks, everything that we need to confront in the next couple of years, we're getting to trillions of trillions of dollars of investments.
We need to mobilize the capital market. We need to mobilize the private market. Private market will not take part of this unless there are returns. This is the essence of Transition Investing.
Chris Hyzy:
Two words that investors are talking a lot about these days: adaptation and resiliency. That's your first theme. Can you take us through that?
On screen copy:
ABC's of Transition Investing
- Adaptation and resiliency
Haim Israel:
Of course. So, we're heading into a world of deglobalization. This will create more and more geopolitical conflicts. This will create more and more investments.
[A map appears with light blue circles and intersecting lines at certain markers. The view then switches to a satellite image, followed by a cyber-themed visual showing digital pieces overlaid with padlock icons.]
Haim Israel:
And as a result, we believe that geopolitic is going to be a big part of it. As a result, of course, that translates to defense investments, that translates to cyber, technology, infrastructure investment for each and every country. Automation. How do I rely on automation going forward? Because sometimes I cannot rely on other countries to produce me things anymore.
I need to understand where's my infrastructure, where do I need to invest in that? Eventually it all comes down to the race over technology, the race for AI. The tech war, as we call it in our world, which is going to dramatically increase tension between countries, it will dramatically increase the resilience, though, and the defense topics.
Chris Hyzy:
You mentioned infrastructure a few times here. You also talked about tech wars. We see that really playing out over this last couple of years and potentially accelerating. Your second theme is all about built infrastructure and resources. Let's dive into that.
On screen copy:
ABC's of Transition Investing
- Built infrastructure and resources
[Graphics appears. A row of computers displays data on their screens, with an even larger screen in the background also showing data. Graphic switches to a room with tall, large units arranged in rows, illuminated with lights. The exact function of the units is not specified.]
Haim Israel:
This tech revolution, we are starting to understand how much resources do we need in new infrastructure. We need roughly 50% more data centers in the world right now. Chris, if we build all these data centers, we will need more land than Singapore, more energy than Japan. We will need more water infrastructure. Plus, we're going to have to rebuild the entire network because we are talking about different transmission, different needs, different storage.
On screen copy:
$94 trillion: Projected total global infrastructure investment needed by 2040.
Source: Oxford Economics Global Infrastructure Outlook, September, 2017.
Haim Israel:
All that adds up to $94 trillion of investments — give or take the world GDP in the next ten years. This is something that humanity have never, ever seen in the past. This is something that if we add automation on back of it, we add technology, if we add all the different broadband networks and everything that we need over here...something that humanity is going to have to start worrying about.
Because for the first time, governments have an interest to invest in infrastructure. Infrastructure has always been a theme.
Chris Hyzy:
Yeah. If infrastructure is the backbone to a big portion of the Transition Investing and the buildout that you've already talked about, the circulatory system could be clean energy.
On screen copy:
ABCs of Transition Investing
Chris Hyzy:
That's your third theme. Let's dive a little bit into that. But also, within that, how in the world are we going to power up all of this?
Haim Israel:
This is a great question. We will need so much more energy.
On screen copy:
International Energy Agency estimates 80 million km of new and refurbished power lines will be needed by 2040.
Source: BofA Global Research, Transition Investing report, Sept. 30, 2025.
[Graphics appear to the right of Haim: A field with windmills transitions to an aerial view of solar panels stretching across a landscape, then back to windmills on a hill with a highway below and moving traffic. The video then shows a row of electric vehicle charging stations, followed by a sky view displaying both windmills and solar panels in the landscape below.]
Haim Israel:
We'll have to double the global electricity grid in the next ten years. We have to pump at least 30% more energy to power all these data centers. We just don't have enough. Two things we need to understand, here. First of all, we need more energy. So much more energy. We need energy that will be independent, that will be cheap — because we need a lot of it — and has to be scalable very fast. So, there's no one silver bullet that meets all of them. But renewable energy is the energy that meets all, most of those criteria. It is 25% cheaper than fossil, on average. It's scalable very fast, and it's independent. Every country can rely on one form of renewable energy
And the other element that we're going to see is nuclear, nuclear, nuclear.
On screen copy:
U.S. aims to quadruple nuclear energy capacity by 2050.
Source: White House Executive Order, May 23, 2025.
Haim Israel:
So, we saw with the first orders in the United States will quadruple nuclear capacity by 2050. Nuclear is definitely going to be part of the solutions. The second side is rebuilding the grid in a much more efficient way. We are now relying on grids which are decades, if not centuries, years old. We are relying on very old materials, no smart meters, no AI built in networks. We can cut up to 25 to 35% of all energy if we just move to the next generation of networks and investments in smart grids going forward.
Chris Hyzy:
So, Haim, let's talk about the fourth theme. Everyone discusses the buildout of artificial intelligence, but it's deeper than that. We've talked a lot about the buildout of the digital infrastructure.
On screen copy:
ABCs of Transition Investing
- Digital and human capital
Chris Hyzy:
Your fourth theme touches on two components of that, which is digital and human capital. Can you take us through that?
Haim Israel:
There is already a race on the right human capital in the world. AI is already changing jobs; it's disrupting the job market left and right. Everything that we can automate, we automate already. Because of this deglobalization theme that we keep seeing, in order to bridge the gap of the workforce, we are using AI already. We need a completely different human capital. We need to reskill people in a very different way. We need human capital. We need human skills. A lot of the things that we've done in the past are not relevant to the new job. We think, Chris, that — we've been talking about human capital — by 2030, 1 billion people will need to be reskilled. Now I'm a big believer that there will be more jobs than less jobs in five to 10 years. But A, the change is very, very fast.
On screen copy:
AI's potential labor market disruptions:
- Fast change
- Different jobs
- Return of blue collar jobs
Haim Israel:
B, there will be very, very different jobs than what we had up until now. And C, which we need to start thinking about, the blue collar is making a huge comeback because AI can definitely write my codes and can design my computer, but still can't open my clogged sink or change my lightbulb.
Chris Hyzy:
Let's switch to your last and final theme that you highlight in Transition Investing framework. And that's all about enabling finance. Someone, some areas have to support all of this, and have to finance a lot of this. Take us through that last theme.
On screen copy:
ABCs of Transition Investing
Haim Israel:
Money will not flow without returns, without, a proper return on equity, return on investments. And this is our fifth theme: that if we are looking for investments, we need to understand where the profit sits. This is what the capital market considers. So, it's not just doing good to the world. It's definitely doing good to the world, but it also has to do, we to do good, we need to do well for ourselves as well.
So, this combination is important. And we start to see that. We saw an inflow, because we are changing the thinking about Transition Investing. We are already starting to see an inflow of $12 billion of net inflows just in the last couple of months.
Total assets under management right now, both on the equity market and on the bond market is a little more than half $1 trillion, which is chasing yields. This is the biggest change over here. If we are not going to be able to support returns, we're not going to be able to mobilize the private market.
Chris Hyzy:
Haim, that's been terrific. Thank you for all of your insights. And thanks for joining us on this 2026 Outlook program.
[Split screen showing Chris Hyzy and Haim Israel transitions to show of Chris speaking alone on camera.]
Chris Hyzy:
Haim's expertise on Thematic Investing and where technology may take us in the near and long term are so relevant for portfolio positioning.
Now let's turn to Marci McGregor, Joe Quinlan and Matt Diczok for insights on what's ahead for markets in 2026, and ideas to consider for your portfolio.
[In the taped discussion, moderator Chris Hyzy sits on the left side of the panel. To his right are panelists Marci McGregor, Matthew Diczok and Joe Quinlan, all seated in a row, facing the camera]
Chris Hyzy:
Marcy. Matt. Joe. Welcome today. Thanks for joining me. I want to talk a little bit about, as we wrap up, 2025 as the flywheel hums heading into 2026 with some very good momentum here. Still a lot of things to unpack in terms of Transition Investing, digital infrastructure, etc., the entire buildout not just of artificial intelligence, but other parts of that horizontal. Marci, let's first start with you. Where do equities go from here?
On screen copy:
Marci McGregor
Head of Portfolio Strategy
Chief Investment Office
Merrill and Bank of America Private Bank
Marci McGregor:
Well, the bull market just celebrated its fourth birthday. So it's natural to wonder where do we go from here.
On screen copy:
Bull market entered its fourth year in late 2025.
Marci McGregor:
And while we've seen around a 90% return in the S&P 500, that actually pales in comparison to past bull markets. So we do think there's legs to run. But the drivers are going to be corporate profits, which have been growing for the last four quarters at a double-digit pace year over year.
On screen copy:
Artificial intelligence is driving the current investment cycle.
Marci McGregor:
So that's a really positive story. But we're also seeing a broadening in corporate profits. If we take a look at the U.S. economy, artificial intelligence is driving this investment cycle. But it's also likely to boost productivity in the U.S. economy. So that's going to be a major driver here as well.
Chris Hyzy:
Let's transition a little bit, Matt, to yields. We're talking about financing all of this. Any impact on the corporate sector from the yield curve perspective within fixed income in this big buildout.
On screen copy:
Matthew Diczok
Head of Fixed Income Strategy
Chief Investment Office
Merrill and Bank of America Private Bank
Matthew Diczok:
So within fixed income we see a good opportunity for investors here. Yields are certainly so much higher than they've been for the past several years. But they're not too high that corporates can't finance themselves. We're seeing tremendous opportunities for corporates to come into the corporate debt market to finance this buildout. Investors are still hungry for yield. Looking to add yield where they can and they're finding opportunities to put capital to work at companies that need the issuance.
Chris Hyzy:
And what we're talking about there that there's a lot of worries that there's new debt financing coming out there to build some of this. And you're starting to see international investors, as you said, the demand for those is very high. You still see demand there for the corporate side. From a financing perspective.
On screen copy:
International demand for U.S. corporate bonds remains high.
Matthew Diczok:
We absolutely still see demand — it's been very interesting the last 10 to 15 years. There are a lot of worries in April, if you remember when the tariffs came out, that people were going to start selling treasuries or the dollars that we use lose reserve currency status. You zoom out six months later, we've seen continued inflows from international investors. We saw the ten year was 5% or the year all the way back down to 4%. This is still the destination for global capital in the U.S.
Chris Hyzy:
Now, Matt, you talked about 5% on the ten-year coming down to where we're at, close to 4% or so. Very different than what we saw when we first saw the Federal Reserve cut rates before the pause. Everyone was worried that this time around, if they cut, yields are going to go back up. We're not seeing it right now.
[Half screen copy and image of a federal government building]
On screen copy:
Federal Reserve's dual mandate
- Keep inflation in check
- Keep U.S. employment high
Matt Diczok:
We're not seeing that. Generally the driver of long-term rates is what is the Fed doing with short-term rates. And the Fed is most focused on two things: keeping inflation in check and keeping employment U.S. high. You got those two jobs. They are way more focused right now on keeping maximum employed. Keeping the consumer in good shape, keep businesses running. Then they're concerned about inflation. That's very positive both for fixed income because they're probably going to cut rates for this year more likely three or potentially four times next year according to the market. But that's also good for equities.
Chris Hyzy:
So Matt talked about worries. Talked a little also about the potential that the international community or the investment community was worried that there would be selling of treasuries from foreign central banks or international investors. What is actually going on, Joe, and any effects on gold?
On screen copy:
Joe Quinlan
Head of Market Strategy
Chief Investment Office
Merrill and Bank of America Private Bank
Joe Quinlan:
They are, central banks, diversifying into gold, but not dramatically, very slowly. It's illiquid. They've got to cover things overnight. So the dollar still has a good bit, you know, during April during all the volatility globally related to tariffs, there was about $10 trillion spent overnight in foreign exchange. The dollars on 90% of either the bid or the ask. So the central banks are diversifying but the dollar is still their core holding.
Chris Hyzy:
Marci, let's dive a little bit into sectors and valuation. Two areas that our clients and investors focus on quite a bit, regardless of what cycle we're in. What are our thoughts there.
Marci McGregor:
Valuations matters, but it's not the only factor when you think about portfolio construction. So our overweight position in equities is we would like to be really well diversified. But it's really driven by our view that earnings are growing. So when I think about it it's U.S. equities relative to the rest of the world. Again that fundamental earnings driver earnings revision ratios or analyst estimates looking forward are higher in the U.S. than the rest of the world.
[A full screen image of a horizon at dusk with a telescope in the foreground]
On screen copy:
Areas of the market to watch in 2026
- Financials
- Utilities
- Small cap companies
Marci McGregor:
And we like sectors like financials. We like utilities because we're seeing this broadening in corporate earnings. It's not just about tech in the Mag 7 anymore. It's about this broadening. We're seeing more sectors have double digit earnings growth each quarter. And that's a real positive. But small cap companies they exited their earnings recession recently. But I think small caps can also benefit from interest rates that have been drifting lower. And I think that's going to be a key driver. So we want to be really well diversified, but continue to like U.S. equities relative to the rest of the world. And earnings is underpinning that view.
[Full screen image fades and video cuts back to Marci speaking on screen]
Chris Hyzy:
Closing the gap small caps finally, at least in the back half of the year. Speaking of closing the gap, we have a big gap on the private side of the equation as it relates to infrastructure. Let's talk about private markets and the infrastructure opportunity. What do you what are you seeing there?
Marci McGregor:
For new money being invested, we like venture and growth equity strategies. Now it's our view. If you take a big step back and think about the innovation that's going on as an undercurrent in the world we live in, I would argue that a lot of these companies, the leaders of the market in a decade or two decades, are really in their infancy on the private market side, especially if investors are concerned about valuations, maybe in the Mag 7 or public markets. Look at the leaders of tomorrow. And I think the venture growth equity space for qualified investors is a really interesting space.
Chris Hyzy:
So Joe, we've talked a lot about power infrastructure, artificial intelligence build out. It seems like it's every major headline now, but what's not talked about enough, at least in a positive tone, is the consumer. Take us through the consumer who's driving what when it comes to consumer spending.
Joe Quinlan:
Well, Chris, you said at the outset that the boomers are spending and they are. This country has never been wealthier household net worth $175 trillion. But here's the kicker.
On screen copy:
Higher-income households are dominating consumer spending.
Source: Bank of America Institute
Joe Quinlan:
And here's the problem, potentially too, higher income households are driving spending, lower income households, we know from Bank of America Institute they're struggling. So the bifurcated consumer that's going to continue into 2026. But when you got a bull market in equities, tremendous home appreciation, unemployment rate below 5%, consumers high and low are going to be out there spending. So this story continues.
Chris Hyzy:
And another big theme is the outperformance of non-dollar assets particularly the equity markets overseas whether it's emerging markets or the developed world. Is the growth going to be there in 26 and 27 to continue this size of the outperformance?
On screen copy:
KOSPI = Korea Composite Stock Price Index
Joe Quinlan:
Not in like say South Korea, which is up around KOSPI 75%. Don't expect that to happen again. Europe a little different. Defense spending is driving it more value. Luxury is coming back. China tech has got its own kind of thing going growth. And then when you look at Japan here against defense health care. So really pick your spots carefully. But I would say at the end of the day it's still the U.S. in front leading the train.
Chris Hyzy:
So Matt let's switch over to a portfolio strategy from a fixed income perspective. Given what you said about the Federal Reserve and where we're going with monetary policy, what you talked about in terms of where yields are, what should investors and our clients consider heading into '26? And what if you look back on the full year from 2026. Where do we see things going.
Matthew Diczok:
So the first and most important thing for our investing clients is that they have to understand that fixed income is longer dated, fixed income five, six, seven years, not cash. Cash over longer periods of time will reliably underperform fixed income and underperform equities. Generally, cash just keeps pace with inflation.
[A full screen image of a horizon at dusk with a telescope in the foreground]
On screen copy:
Potential fixed income ideas for 2026
- Stretch beyond cash
- Diversify into longer-term assets
- Municipals for high-tax clients
Matthew Diczok:
And so the major thing for clients is to stretch out from cash where appropriate, get to a diversified, longer term fixed income portfolio. Think about a physician and Hippocratic oath, first. Do no harm. Think the same thing about our clients. Be very prudent with their capital. If we don't see great opportunities in sectors, we're not going to be over underweight sectors. So we're relatively neutral we would say. However, for our high tax rate clients, the municipal market looks extremely attractive at the moment in our opinion, particularly in the longer end. For example, longer end munis right now about 4.5%. So for some clients who may approach close to 50% total tax rate, federal and state, that's the equivalent of 9% pretax equivalent yield. That's a high yield for an investors grade municipal type portfolio. For those clients, some longer term munis portfolio would certainly make sense.
[Full screen image fades and video cuts back to Chris speaking on screen]
[A large on screen text box appears on the side of the screen while the panelists remain visible, showing a list of themes. Each theme highlights as the panelists speak about them]
On screen copy:
The Great Eight: themes for 2026 and beyond
Start of historic investment cycle
S&P 500 could double
Not a bubble: AI infrastructure
Private market: future tech giants
Yields stay range-bound
Premium valuations here to stay
Next cycle: record productivity
Gold as global hedge
Chris Hyzy:
So we just all released collectively as a Chief Investment Office, the Great Eight, two of which are pretty bold statements. One being this could potentially be the beginning stages, again, of one of the greatest investment cycles ever. And two, within that, the S&P potentially doubling from the levels of summer of 2025 out six to seven years. Within the remaining six, Marci, what resonates with you?
Marci McGregor:
The two that I would think about are the ones that really look to the big cycles. So one, the question that's front of everyone's mind is AI in a bubble? We would push back on that and say, no, we're building the digital infrastructure of tomorrow. And then the second one is on the private market side where venture growth equity strategies are really incubating. I would argue the market leadership of tomorrow, that's where we're seeing the next big mega-cap tech companies being born.
Chris Hyzy:
Right? Very deep roots. Matt, how about yourself?
Matthew Diczok:
The two I'd pick is first yields being range-bound over the next couple of years. Right. We've seen this massive change where rates finally got to above inflation. More normalized. The fed no longer buying bonds. We think their based at the right level right now that's kind of where they should remain. But as the conservative bond guy you know I got to bring up premium valuations.
Chris Hyzy:
Of course.
Matthew Diczok:
We actually think premium valuations are going to stay. We've got a Congress that continues to spend. We have an executive administration that wants deregulation and tax cuts. And we have a fed hyper attuned to risks in the market. This is a reason that premium valuations might actually be anticipating more economic growth and might stay premium for a while.
Chris Hyzy:
Joe, what are the final two?
Joe Quinlan:
Productivity and gold, Chris. Now productivity first, in the sense that US companies have done a phenomenal job managing the ways through the pandemic, geopolitics, the spike in inflation, changes in administrations, tariffs. So I think the productivity boom in front of us keeps earnings better than expected and higher expected returns. Gold is a diversifier debt deficits, demographics. You want that part of that of your portfolio. Because we do have sovereign debt. Some issues higher deficits debt working their way through, we have gold diversifier.
Chris Hyzy:
So that's the great eight. So final question Joe. Let's start with you. One word to describe all of 2026. What is it?
Joe Quinlan:
Affordability.
Chris Hyzy:
Matt?
Matthew Diczok:
Opportunity.
Chris Hyzy:
Marci?
Marci McGregor:
Innovation.
Chris Hyzy:
I want to thank you all for joining me today.
[The full panel view of Chris Hyzy, Marci McGregor, Matthew Diczok, and Joe Quinlan fades out, leaving a shot of Chris Hyzy speaking alone into the camera.]
And thanks to all of you for taking part in this program. I hope it's given you some good ideas to consider for your long-term investment strategy. Here are a few takeaways.
The economy is sending positive signals we believe set up a dynamic year for equities.
[A full screen image of a horizon at dusk with a telescope in the foreground]
On screen copy:
Potential growth themes
- AI innovation
- Energy transformation
- New infrastructure
- Redeployment of human capital
Twenty twenty-six looks like it could be a year of powering into a new era of potential growth based on fundamental themes like AI innovation, energy transformation, new infrastructure and redeployment of human capital.
On screen copy:
Moves to consider
- Put excess cash to work
- Stay invested for the long term
- Diversify your portfolio
- Speak with an advisor
For investors, we think now is a time to consider putting excess cash to work. There are risks. Stocks may feel overvalued and unforeseen events could alter the economic or market outlook. But the biggest risk may be missing out on future growth by waiting for the "perfect time" to enter markets.
Once invested, stay invested for the long term. Diversify across and within asset classes to help protect against short-term volatility and stay focused on your goals. An advisor can help you consider the options and design a portfolio for your situation and needs.
Thanks again for joining us today, and we look forward to seeing you again soon.
[The video transitions to a white screen, where disclosure text is displayed.]
On screen disclosures:
Important Disclosures
The opinions expressed are as of 11/17/2025 and are subject to change.
Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
Diversification does 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. Stocks of small-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice-versa. Income from investing in municipal bonds is generally exempt from Federal and state taxes for residents of the issuing state. While the interest income is tax-exempt, any capital gains distributed are taxable to the investor. Income for some investors may be subject to the Federal Alternative Minimum Tax (AMT). Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration. Investing in Gold involves special risks, including market price fluctuations, regulatory changes, interest rate changes, credit risk, economic changes, and the impact of adverse political or financial factors.
Alternative investments are intended for qualified investors only. Alternative Investments such as derivatives, hedge funds, private equity and private credit funds, and funds of funds can result in higher return potential but also higher loss potential. Investments in private markets involve a high degree of risk and therefore should only be undertaken by qualified investors whose financial resources are sufficient to enable them to assume these risks and to bear the loss of all or part of their investment. Investments in private markets include significant risks not otherwise present in public market investments. Furthermore, private market investors are afforded less regulatory protections than investors in registered public securities.
Investments in Infrastructure Assets will be subject to risks incidental to owning and operating infrastructure projects, including risks associated with the general economic climate, geographic or market concentration, government regulations and fluctuations in interest rates. The industries targeted for investment may be highly regulated by governmental agencies. Such regulations may impact an investor's ability to acquire, dispose of and/or manage investments.
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.").
BofA Global Research is research produced by BofA Securities, Inc. ("BofAS") and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC popup, and wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
Bank of America Institute is a think tank dedicated to uncovering powerful insights that move business and society forward. Drawing on data and resources from across the bank and the world, the Institute delivers important, original perspectives on the economy, sustainability and global transformation.
Merrill makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of BofA Corp. MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.
Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill's obligations will differ among these services. The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC and other affiliated banks.
Bank of America Private Bank is a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of BofA Corp. Trust and fiduciary services are provided by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A.
Investment products:
| Are Not FDIC Insured |
Are Not Bank Guaranteed |
May Lose Value |
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