The Flow-Into the Jackson HoleShow

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 10 to 12. 12866442 The Flow ShowInto the Jackson Hole Scores on the Doors: bitcoin 27.5% gold 27.2%, stocks 14.7%, IG bonds 8.6%, HY bonds 8.2%, govt bonds 7.0%, cash 2.6%, commods 0.6%, US$ -9.8%, oil -12.6% YTD. Zeitgeist: “I’m just hoping the market goes up more than the currency goes down.” Tale of the Tape: sell US$: 88 central bank rate cuts YTD, fastest cut cycle since ‘20 (Chart 3); stocks/credit anticipate Fed joining party; but new debates on Fed independence, higher Fed inflation target, sectoral price controls, gold revaluation, YCC (Chart 4) mean “disruption = debasement”, policy disruption to drive US$ bear (DXY below 90 – Chart 5), in turn driving higher allocations to gold, crypto, EM higher in second half of 2020s. The Price is Right: sell Alaska oil bounce: oil & natural gas (-41% since March) priced for Russia/Ukraine peace; but Trump geopolitics aims for lower energy prices for US consumer…should US-Russia cooperate in "Race for Arctic" to monopolize cheaper/safer Northern Sea Route shipping lane and exploit 15% of world's undiscovered oil, 30% of world's undiscovered natural gas (Chart 11), bear market in energy prices deepens. The Biggest Picture: champagne for stocks: S&P 500 price/book ratio at record 5.3x (Chart 2) driven by Anything but Bonds allocation and AI boom; FX debasement (favors nominal assets), demographics (millennial/Gen Z belief wealth via stocks not real estate), global rebalancing from US to RoW consumption all “it’s different this time” candidates; if not different this time, bonds get some love, international stocks>S&P500 continues. Chart 2: It better be different this time S&P500 price-to-book value ratio Source: BofA Global Investment Strategy, Bloomberg BofA GLOBAL RESEARCH More on page 2… 0.9xJun'492.2xNov'680.9xJul'825.1xMar'001.6xFeb'095.3xAug'250.00.51.01.52.02.53.03.54.04.55.05.519461957196819791990200120122023S&P 500 Price/Book Value1.5stdev-1.5stdevaverage14 August 2025 Investment Strategy Global Michael Hartnett Investment Strategist BofAS +1 646 855 1508 michael.hartnett@b