Why This BofA Chart Keeps Bulls Up at Night

The video discusses market expectations, positioning trends, and the impact of fiscal stimulus on the market. It highlights the high expectations for growth and the potential risks associated with fiscal stimulus, such as increased yields and bond market reactions. The discussion also covers economic surprises and their effects on the market, noting a recent decline in the US Economic surprise index. Finally, the video examines the political dynamics surrounding fiscal stimulus proposals and the potential challenges in implementing them.

What is the current level of cyclical positioning according to the transcript?

• Lowest since 2011

• Highest since 2011

• Lowest since 2008

• Highest since 2008

What is the estimated impact of fiscal stimulus on US growth?

• 5 basis points

• 10 basis points

• 15 basis points

• 20 basis points

What is one potential risk of fiscal stimulus mentioned in the transcript?

• Increase in unemployment

• Backup in yields

• Decrease in stock prices

• Rise in inflation

What has been the trend in the U.S. economic surprise index recently?

• Declining

• Fluctuating

• Stable

• Increasing

What is the relationship between negative economic surprises and fiscal stimulus according to the transcript?

• Negative surprises are expected to equal fiscal stimulus

• Negative surprises have no impact on fiscal stimulus

• Negative surprises reduce the need for fiscal stimulus

• Negative surprises lead to increased fiscal stimulus