BofA Sees Cash as King in 2019 Markets

The video discusses the shift in investment strategies due to changing market conditions. In 2019, cash yields became a competitive alternative to equities, prompting investors to reconsider asset allocations. The speaker predicts market volatility with significant price movements and advises focusing on companies generating free cash while avoiding credit-sensitive stocks. The rising cost of capital, influenced by the Federal Reserve's policies, marks a transition from a period of free capital to one where capital costs are increasing, necessitating a recalibration of investment strategies.

What are the key factors influencing investors' asset allocation decisions according to the text?

How does the speaker predict the market will behave over the next 12 months?

What is the speaker's stance on companies that are generating cash?

What does the speaker suggest investors should do with credit-sensitive stocks?

What changes in the cost of capital does the speaker anticipate?