BofA Merrill Lynch Global Research Year Ahead Outlook

BofA Merrill Lynch Global Research 2018 Year Ahead Outlook

BofA Merrill Lynch Global Research released its outlook for the markets in 2018, issuing an overall forecast for the year that is so macro bullish, it’s ultimately market bearish. Analysts are calling for robust global economic growth, steady U.S. expansion and solid stock returns that are expected to peak in the first half of the year. They warn of signs, however, that the long bull market run is nearing the end of its leash, triggering a mid-year pullback alongside potential for some of the best returns in the last gasps of the cycle.

The team forecasts modest returns in equities and credit, negative bond returns, a stronger dollar, higher levels of volatility and tighter credit spreads in 2018. Inflation is expected to be the big story of the year, particularly in the U.S., where the labor market is expected to further tighten and inflation pressures are building. Passage of U.S. tax reform is the main upside risk to economic growth, with far-reaching effects, particularly for emerging markets, that have not been fully priced into the market.



News Release and Additional Information

Press Release

Dec. 5, 2017 — BofA Merrill Lynch Global Research 2018 Market Outlook: A Year Ahead Forecast So Bullish, It’s Bearish

 

Additional Materials

Dec. 2017

       -   Commodities        -   Investment Strategy   
  -   Credit Strategy   -   Rates
  -   Emerging Markets   -   U.S. Economics
  -   Foreign Exchange   -   U.S. Equity Strategy
  -   Global Economics   -   Year Ahead Economic Outlook Video


For More Information

For more information regarding the BofA Merrill Lynch Global Research 2018 Year Ahead Outlook, please contact Melissa Anchan, Bank of America, 1.646.855.3152.