REUTERS/Lucas Jackson
- A new Bank of America Merill Lynch report outlines the bank's bullishness toward risk assets in 2019, as well as its bearish shift for the following year.
- The firm is constructive on risk assets through the end of 2019, citing low rates in response to the global tarde war.
- Beyond that, BAML expects a "big top" in asset prices to arrive in 2020 when the bond bubble, recession fears and "policy impotence" threaten the global economy.
- The firm outlines 19 key statistics crucial for anyone trying to understand markets right now.
- Visit the Markets Insider homepage for more stories.
A new report from Bank of America Merill Lynch highlights the bank's bullish stance through the rest of 2019 and bearish shift the following year.
Risk assets are poised to rally through the last months of 2019 as "bearish positioning and bullish monetary policy" outpace slowing macroeconomic growth, the bank's analysts said.
Their outlook on such assets turns sour for 2020, with recession fears, "policy impotence," and a growing bond bubble risking a ceiling for credit and equities. The analysts call this peak a "big top."
"Despite the trade war grabbing all the headlines in 2019, returns from equities, bonds and commodities have been incredibly strong as once again bearish positioning and bullish monetary policy have trumped the macro," the team led by Michael Hartnett said Tuesday.
Below are 19 key statistics helping to inform BAML's view. The firm says they're crucial for anyone trying to make sense of markets right now.
Get the latest Bank of America stock price here.