The pandemic recession is in the rear-view mirror and a new cycle of global expansion has launched, a Bank of America Private Bank senior strategist says

• Marci McGregor, senior investment strategist, Chief Investment Office, Merrill and Bank of America Private Bank, told Bloomberg on Monday that the recession is in the rear-view mirror and a synchronized expansion is underway around the world.

• The strategist pointed to strong trends in housing and the resilient consumer as signs of this expansion.

• Investors should diversify their portfolios with quality bonds and gold as this expansion continues, according to McGregor.
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Marci McGregor, senior investment strategist, Chief Investment Office, Merrill and Bank of America Private Bank, told Bloomberg on Monday that the global economy is entering into "a synchronized expansion."

"We are believers that we are at an inflection point. We have moved past the recession which is now in the rear-view mirror, and we are now in the early innings of a new economic cycle in our view," McGregor said.

The strategist said that strong trends in housing are an indicator that the economy is in the "early innings" of a new expansion. She said contrary to popular belief, strong housing cycles tend to begin when unemployment is high. McGregor also said the resilient consumer and positive retail sales are promising signs that an expansion is underway.

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"Our view is that yes, this is a new cycle, the initial stages are going to be bumpy, but this is going to be a global expansion that's fueled not only by the consumer but you have fiscal and monetary policy really on all cylinders right now, for the first time in a long time," McGregor added.

Investors looking to diversify for this trade should load up on investment-grade corporate bonds and be up in quality bonds, even if "equities are more interesting," McGregor said. She also said that she sees upside in the price target of gold, but primarily views it as a diversifier in a portfolio. Oil prices may move higher into 2021 as industrial production picks up during this economic expansion, added McGregor.