Bank of America predicts strong but highly volatile economic growth in 2026

🔸Bank of America (the second largest bank in the U.S.) forecasts that global economic growth in 2026 will exceed expectations, with the U.S. and China leading the growth.

🔸Artificial intelligence remains the main driver of growth, and Bank of America believes that there is currently no AI bubble.

🔸Due to fiscal spending, tax incentives, corporate investment, and the Federal Reserve's interest rate cuts, the U.S. economy is expected to grow by about 2.4% in 2026.

🔸With stimulus plans and improved trade conditions, China's economy is also expected to grow faster than generally predicted.

🔸U.S. corporate profits are on the rise, but the pace of stock index increases may slow down.

🔸The Federal Reserve is expected to continue cutting interest rates in 2026 to support the bond market.

🔸Home prices are expected to remain stable, but if monetary policy becomes more accommodative, home prices may rise.

🔸Private credit yields may decline, while high-yield bonds will become more attractive.

🔸Due to limited supply and long-term demand, copper prices are expected to remain strong.