A chief investment strategist at Bank of America breaks down the 5 sectors that make up the ‘FAANG 2.0 trade’ as the pandemic and military conflict in Europe drive fundamental shifts in the economy

• Joseph Quinlan is the head of CIO market strategy for Merrill and Bank of America Private Bank.
• In his view, the economy has seen fundamental shifts amid the pandemic and the Russia-Ukraine war. 
• He explains why the FAANG 2.0 trade is best-positioned for upside gains in the new market regime.

As the prospect of an imminent ceasefire in the Russia-Ukraine war dims, the protracted military conflict in Europe threatens to exacerbate already-elevated inflation just as the global economy begins to recover from the COVID-19 pandemic.

The back-to-back crises are driving a fundamental shift from globalization to regionalization, according to Joseph Quinlan, head of CIO market strategy for Merrill and Bank of America Private Bank.

In his view, the world economy is being carved into three “separate spheres” — a China-led Asian bloc, a US-led North American bloc, and a European bloc led by the major powers of the European Union.