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After a tough decade for stocks, the current rally has investors wondering whether the market’s long-term prospects have strengthened. David Bianco, Head of U.S. Equity Strategy for BofA Merrill Lynch Global Research, looks at the areas and sectors
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Equities: Finding Growth in 2010 and Beyond
David Bianco, Head of U.S. Equity Strategy, BofA Merrill Lynch Global Research, weighs in on continued market strength, the prospects for the dollar and the surge in emerging markets. (Originally taped on January 7, 2010)
After a tough decade for stocks, the current rally has investors wondering whether the market’s long-term prospects have strengthened. David Bianco, Head of U.S. Equity Strategy for BofA Merrill Lynch Global Research, looks at the areas and sectors most likely to hold growth potential in 2010.
Transcript of Video [PDF] |
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Two top BofA Merrill Lynch Global Research analysts discuss growing signs of health in financial stocks and the credit markets.
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Signs of Strength in Financial Services
Two top BofA Merrill Lynch Global Research analysts discuss growing signs of health in financial stocks and the credit markets. (Originally taped on January 11, 2010)
As indications grow stronger that the economy and global markets are stabilizing, prospects for both equities and the credit markets — which include high-grade and high-yield corporate bonds — are improving. Many financial stocks have risen strongly in the past year, and banks are generally well-capitalized and ready to lend. At the same time, credit quality needs to strengthen and commercial real estate remains a problem area. So what do these trends, taken as a whole, portend for the financial sector in the coming year?
In this video, Adam Quinton, head of Global Macro Research, BofA Merrill Lynch Global Research, talks with two top analysts — Jeff Rosenberg, head of Global Credit Strategy, and Guy Moszkowski, Capital Markets and Money Center Banks analyst — about a range of issues that may have an impact on recovery in financials. They also offer specific guidance on investment opportunities in financial sector equities and corporate bonds for 2010 and beyond.
Transcript of Video [PDF] |
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Mary Ann Bartels, Head of U.S. Technical and Market Analysis, BofA Merrill Lynch Global Research, recommends a return to the stock market as a way to build long-term growth.
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Equity Markets: A Show of Strength in 2010?
Mary Ann Bartels, Head of U.S. Technical and Market Analysis, BofA Merrill Lynch Global Research, recommends a return to the stock market as a way to build long-term growth. (Originally taped on January 7, 2010)
The new year started "with a continuation of the strong gains in equities that began last March," observes Mary Ann Bartels, head of U.S. Technical & Market Analysis for BofA Merrill Lynch Global Research. To her, that's a definite sign that stock market returns are likely to remain on the upswing in 2010. And with continued strength in corporate earnings and low returns on less risky investments — such as cash and money market funds — she believes that many investors will return to equities over the course of the year.
Some of the promising opportunities she sees in the coming year include high-quality stocks such as mega-cap multinationals — companies with market capitalizations of more than $20 billion and overseas sales of at least 25%. As Bartels notes, "These companies generally have solid balance sheets, strong cash flows and provide attractive dividend yields."
Despite what she regards as potential 'speed bumps' in 2010 — such as the possibility of rising interest rates on Treasury bonds and higher oil prices — Bartels believes that "the secular trend favors stocks over bonds" and continues to recommend high-quality equities as a strategy for potentially building long-term growth.
Transcript of Video [PDF] |
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Michael Hartnett, Chief Global Equity Strategist and Chairman of the Research Investment Committee, BofA Merrill Lynch Global Research, discusses revisiting asset allocation strategies in 2010.
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A New Asset Allocation For a Renewed Market
Michael Hartnett, Chief Global Equity Strategist and Chairman of the Research Investment Committee, BofA Merrill Lynch Global Research, discusses putting more weight in equities for 2010. (Originally taped on January 13, 2010)
The revival in global financial markets that began in 2009 will stretch well into this year, making now an appropriate time for investors to revisit their asset allocation strategies. That's a key conclusion of the Research Investment Committee's (RIC) latest report. According to Michael Hartnett, chief global equity strategist and chairman of the RIC, BofA Merrill Lynch Global Research, the committee is changing its recommended asset allocation for investors with a moderate risk tolerance; equities have been raised to 65% from 60%, and bonds lowered to 30% from 35%. This change in weighting can help investors capture the growth potential that Hartnett believes stocks will offer in 2010.
In discussing the most promising opportunities, Hartnett singles out emerging economies — which, as he notes, "represent more than 80% of the world's population, but just 13% of the world's equity market capitalization." The RIC also reaffirms its confidence in large-cap stocks, which can offer strong growth potential in the aftermath of market downturns and have greater exposure to economic growth overseas.
Transcript of Video [PDF] |
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The Tangible Strength in Real Assets
World economies are built on real assets. For businesses, they are direct and pragmatic: the factories and production lines, the cornfields and coal mines that fuel prosperity and growth. Institutional investors rely on real assets such as oil, timber and grain to gauge international market forces, to diversify their portfolios and to protect themselves against the damaging by products of troubled times: inflation and volatility.
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Family Values, Family Wealth
As global economic woes hit home, even families of the greatest means were forced to reassess how they can preserve their financial legacies for generations to come. But the greatest risk of losing family wealth may have less to do with market forces, and more to do with how families manage their legacy planning in both good times and bad. A recent study by the Williams Group, a family wealth consulting company, underscores the problem: As many as 70% of wealthy families actually lose control of their wealth by the end of the second generation, and 90% by the end of the third. It's an alarming statistic that unfortunately bears out the adage, "From shirtsleeves to shirtsleeves in three generations."
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Values-Based Investing
The line that has separated the building of wealth from accomplishing social goals has been one of the most enduring features of capitalism. The industrialists of the Gilded Age amassed fortunes in manufacturing, railroads and banking, and only then did they turn their attention to erecting the museums, symphony halls and philanthropies that bear their names. As the markets grew during the 20th century, socially minded investments were, as Fortune magazine put it, nothing more than “feel good” investments.
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These research reports provide general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment or any options, futures or derivatives related to such securities or investments. They are not intended to provide personal investment advice and do not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive these reports. Investors should seek financial advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in these reports and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that price or value of such securities and investments may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Diversification does not guarantee against loss in declining markets.
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