BofA Merrill Lynch Global Research – A Research Investment Committee Report – Tuesday, 04 December 2012
2012: stocks lead against all odds
The market remained preoccupied with tail risks throughout 2012. As the year progressed, investors shifted their focus from a break-up of the Eurozone to a hard landing in China and finally to the US Fiscal Cliff. But despite the barrage of bad news, none of the worst-case scenarios came to pass. Hugely supportive central bank policy action from both the Fed and the ECB drove markets higher and volatility lower. And against all odds, asset returns were decidedly positive in 2012: global equities advanced more than 14%, bonds gained 5% and commodities rose just 1%.
Read the full report here.