Are You Ready To Ride The Global Wave?
By Frank Holmes:The economy seems like it's been in choppy waters lately. A rise in manufacturing is negated by a weak jobs number. The U.S. housing market's signs of life are impeded by high gas prices. The eurozone appears to be improving, then a sovereign debt rogue wave surfaces in Spain. How can investors make sense of these mixed signals? Analysts at Bank of America-Merrill Lynch created the Global Wave, a compilation of seven global indicators designed to provide a comprehensive assessment of trends in global economic activity. The compiled data allows investors to predict equity market performance and equity rotation.
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Last week, the Global Wave was signaling a trough in the global cycle, which prompted BofA-ML to suggest "investors position for an economic upturn" by increasing their exposure to equities. According to BofA-ML's research, the MSCI ACWI (All Country World Index) averages a 14.2 percent increase for theComplete Story »