Flash: The macro backdrop - Bank of America / Merrill Lynch

Tomos Rhys Edwards, Bank of America / Merrill Lynch Global Research comments on the global macro backdrop and said that it remains unambiguously one of "High Liquidity" and "Low Growth" (but crucially not "no growth"). His team is likely to remain bullish equities, bearish bonds and cash, and neutral commodities until a recession begins or, more likely, in their view, stronger growth and anticipation of lower liquidity induce fears of a bond crash and a bout of contagion to risk assets.