6.13The Flow Show

Trading ideas and investment strategies discussed herein may give rise to significant risk and are not suitable for all investors. Investors should have experience in relevant markets and the financial resources to absorb any losses arising from applying these ideas or strategies. >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analystunder the FINRA rules.Refer to "Other Important Disclosures" for information on certain BofA Securities entities that takeresponsibility for the information herein in particular jurisdictions.BofA Securities does and seeks to do business with issuers covered in its researchreports. As a result, investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Refer to important disclosures on page 15 to 17. 12841354 The Flow Show20 for the ‘20s Scores on the Doors: gold 25.8%, stocks 7.7%, govt bonds 6.0%, IG bonds 5.9%, HY bonds 5.4%, cash 1.9%, commodities 1.7%, oil -5.0%, crypto -5.4%, US dollar -9.1% YTD. Zeitgeist: “Saying investors are underweight US assets is like saying the runner-up at the Nathan's Hot Dog Eating Contest is underweight hot dogs; he's not underweight, he's just eaten 60 dogs in 10 minutes.” Tale of the Tape: back to Goldilocks, end of trade war, start of tax cuts…door wide open for stock bulls; but fresh US upside healthy only if breadth improves (US value vs growth at multi-year lows…need banks, mid-caps to catch, likes of WMT/COST to hold despite geopolitical oil pop); international value stocks outperforming growth (Chart 3) but watch stalled Europe & Japan banks for 1st signs of Q3 global equity “bull trap.” The Price is Right: contrarian long bonds to keep working…US govt spend growth down from 10% YoY in Dec to flat, Trump needs to keep gas prices down despite Israel-Iran, tariffs proving deflationary in US/more growth -ve in RoW, weakening US labor market, investor focus set to shift from 57 global rate cuts in H1 to Fed cuts in H2. The Biggest Picture: AI eats commodities, Emerging Markets make commodities, US$ in bear, EM stocks at 50-year lows vs US (Chart 2), long EM…easy allocation decision. Chart 2: Long Emerging Markets Emerging Market vs. US equities (relative price performance, USD) Source: BofA Global Investment Strategy, GFD, Bloomberg BofA GLOBAL RESEARCH More on page 2… +1 St. Dev-1 St. Dev0.00.51.01.52.02.5'49'54'59'64'69'74'79'84'89'94'99'04'09'14'19'24EM vs. US equities (US$ terms)13 June 2025 Investment Strategy Global Michael Hartnett Investment Strategist BofAS +1 646 855 1508 michael.hartnett@bofa.com Elyas Galou >> Investment Strategist BofASE (France) +33 1 8770 0087 elyas.galou@bofa.com Anya Shelekhin Investment Strategist BofAS +1 646 855 3753 anya.shelekhin@bofa.com Myung-Jee Jung Investment Strategist BofAS +1 646 855 0389 myung-jee.jung@bofa.com Chart 1: BofA B