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A Year Ahead Forecast So Bullish, It’s Bearish...Bank of American ML Global Research

beebee
edited February 2018 in The OT Bullpen
Summary:
-S&P 500 expected to climb to 2800 in 2018, despite sharp mid-year correction

-Inflation could be a global game-changer for stock and credit markets

-Global economic growth accelerates; U.S. GDP capped by productivity and wages
Global Investment Strategy: Stocks are expected to outperform bonds for the seventh consecutive year in 2018, a track record not seen since 1928. BofA Merrill Lynch investment strategists are bullish on stocks, bearish on
bonds, long U.S. dollar, and long on volatility. Risk-reward for stocks remains attractive for long-term investors but less
attractive for short-to-medium time horizons. Preference is for large caps over small caps, and dividend-growth stocks
over high-dividend yield. Technology is expected to win on momentum, despite lofty valuations and bubble-like
behavior. For sector allocations, BofA Merrill Lynch U.S. equity strategists have an overweight stance on technology,
materials and financials; market weight healthcare, consumer staples, industrials, energy and telecom; and underweight
real estate, consumer discretionary and utilities. BofA Merrill Lynch equity strategists retain a positive view on European, Japanese and Emerging Markets.
Report:
newsroom.bankofamerica.com/print/node/8656
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