BANK OF AMERICA ECONOMIC FORECAST 2026 STRONG GROWTH BUT HIGH VOLATILITY

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Bank of America (the second largest bank in the U.S.) forecasts that the global economy in 2026 will grow better than expected, led by the U.S. and China.

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AI continues to be a major growth driver, and Bank of America believes that there is currently no AI bubble.

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The U.S. economy is projected to grow about 2.4% in 2026, thanks to fiscal spending, tax incentives, business investment, and the Fed's interest rate cuts.

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The Chinese economy is also expected to grow higher than the general forecast, thanks to stimulus packages and improving trade conditions.

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U.S. corporate profits are rising, but the stock market may increase more slowly.

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The Fed is expected to continue cutting interest rates in 2026, supporting the bond market.

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Home prices are forecast to remain flat, but may rise if monetary policy becomes more accommodative.

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Private credit yields may decrease, while high-yield bonds become more attractive.

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Copper prices are expected to remain strong due to limited supply and long-term demand.