BofA Merrill Lynch Global Research – A Research Investment Committee Report – Tuesday, 13 August 2013
Equity market fundamentals keep us optimistic
As Federal Reserve-injected liquidity begins to taper off, US stocks should be more dependent on fundamentals. Q2 earnings appear solid and, just as important, revenues are improving. Valuations remain attractive despite the equity market’s strong return year-to-date. Corporate balance sheets are flush with cash, allowing for capital allocation strategies that often benefit shareholders.
Read the full report here.