Page 52 - Nalyst Note News Today

"The selloff of these types of names could be exacerbated by geopolitical shocks or tensions as we're seeing now with Russia and Ukraine."

The total cash return yield of the S&P 500, which includes both its dividend yield and stock buyback yield, currently stands at 3%.

"The metaverse category could eventually subsume parts of social media, streaming video and video games," BofA said.

"All the sectors that were serial underperformers in the post financial crisis cycle are those that are positively correlated with inflation expectations."

While retail investors are abandoning the type of trades they put on in 2021, they are still sticking with traditional equity funds.

The leading indicator is a risk-off sign that the credit markets are bracing for volatility that could ultimately spill over into the stock market.

"Higher demand, falling spare production capacity, low oil inventories, and rising geopolitical tensions point to Brent hitting $120," BofA said.

S&P 500 stocks with share prices above $500 represent $6.6 trillion in market value, or about 17% of the index, according to BofA.

"Acquiring Peloton would be a major strategic coup and catalyze [Apple's] aggressive health and fitness initiatives over the coming years."

Stocks have a tendency to sell off in the months immediately after the initial Fed rate hike before eventually moving higher, according to the note.