The Flow Show-Trading FCI, PMI - CPI

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 11 to 13. 12902507 The Flow ShowTrading FCI, PMI & CPI Scores on the Doors: gold 58.6%, international stocks 27.5%, US stocks 14.6%, IG bonds 9.6%, HY bonds 9.4%, commodities 7.2%, govt bonds 6.7%, bitcoin 5.8%, cash 3.7%, US dollar -8.6%, oil -17.8% YTD. Tale of the Tape: record year of inflows to equity ETFs ($1.3tn annualized – Chart 3), IG bonds ($430bn), tech ($72bn), 2nd biggest inflow year ever to MMFs ($1.2tn), US large cap ($423bn), outflow losers: small cap ($64bn – record), real estate ($15bn). The Price is Right: mass ease of financial conditions boom for Wall St but cost of borrowing on Main St still “unaffordable”… 4% borrowing cost for US government, 5% for IG corporates vs. over 6% for mortgages, 7% for small biz credit line, 8% for home equity loan, 13% for used autos, 14% for SBA loan, 20% for credit card APR (Table 1). The Biggest Picture: peak easy financial conditions = trough credit spreads; wider tech (Wall St leader) bond spreads/credit default swaps as cash insufficient to finance AI capex “arms race” = wider credit spreads (Chart 2). Chart 2: Trouble in Paradise CDX IG bond spreads vs Oracle 5-year Credit Default Swap (bps) Source: BofA Global Investment Strategy, Bloomberg BofA GLOBAL RESEARCH More on page 2… 20406080100120140405060708090100110120Nov-20Jul-21Mar-22Nov-22Jul-23Mar-24Nov-24Jul-25CDX IG spread (bp)Oracle 5-year CDS (bp, RHS)13 November 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 Bull & Bear Indicator Dips to 6.3 from 6.4 Source: BofA Global Investment Strategy The indicator identified above as the BofA Bull & Bear Indicator is intended to be an indicative metric only and may not be used for reference purposes or as a measure of performance for any fi