S&P 500 peak, global growth slowdown and FX volatility: BofAML's 10 macro calls for 2019

Risk-off until spring

Bank of America Merrill Lynch has forecasted the "bear market vibe" to continue into the first half of 2019 as it makes its top ten macro predictions for the coming year, but added it expects to turn "tactically risk-on" in late spring.

The bank's research team predicts modest gains across both equities and fixed income in the coming year, but cautioned the squeeze on liquidity from higher rates and a flattening yield curve would create further market volatility. However, the analysts have called for investors to make volatility "their new best friend" in the coming year as they also forecast a record high peak in earnings for the S&P 500, saying the US market still has the potential to provide plenty of upside. Sell signals: Five fund buyers reveal their key recession indicators Candace Browning, head of global r...