BANK OF AMERICA ECONOMIC FORECAST 2026 STRONG GROWTH BUT HIGH VOLATILITY
🔸 Bank of America (the second largest bank in the U.S.) forecasts that the global economy in 2026 will grow better than expected, driven by the U.S. and China.
🔸 AI continues to be a major growth driver, and Bank of America believes that there is currently no AI bubble.
🔸 The U.S. economy is expected to grow about 2.4% in 2026, thanks to fiscal spending, tax incentives, business investment, and the Fed cutting interest rates.
🔸 The Chinese economy is also expected to grow higher than the general forecast, due to stimulus packages and improving trade conditions.
🔸 U.S. corporate profits are increasing, but stock indices may rise more slowly.
🔸 The Fed is expected to continue cutting interest rates in 2026, supporting the bond market.
🔸 Home prices are expected to remain stable, but may rise if monetary policy is loosened.
🔸 Yields on private credit may decrease, while high-yield bonds become more attractive.
🔸 Copper prices are expected to remain strong due to limited supply and long-term demand.
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