Banking, finance, and taxes
Bank of America Calls 2013: 1,600 S&P 500 and $2,000 Gold
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Bank of America Corp. (NYSE: BAC) has a new macroeconomic report in its RIC Report series. As it is December now, it is the investment ideas for 2013. BofA has 10 themes it is watching for its Macro/Investment Strategies as the market remained preoccupied with tail risks throughout 2012. Investors have shifted their focus from a break-up of the eurozone to a hard landing in China and finally to the U.S. fiscal cliff.
In 2013, BofA’s RIC Report shows that a core view that the global economy will gradually pick up steam in the second half of the year, following a resolution to the fiscal cliff and after Spain asks for formal help from the European Central Bank.
As far as changes to equity allocations: Reduce large-cap growth and raise large-cap value, small-cap growth and small-cap value. Changes to bond allocations: Reduce mortgage-backed securities and raise corporate bonds.
BofA’s 10 key investment ideas for 2013 are as follows:
Bank of America sees the S&P 500 Index rising to 1,600 for a new all-time high. Its RIC Report said:
While we believe near-term risks to US equities remain skewed to the downside as the Fiscal Cliff plays out, the asset class should pick up in the second half of 2013 as US and global growth gain momentum.
JON C. OGG
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