- In an earlier preview of 2019 strategy, Bank of America Merrill Lynch says the firm is Overweight the healthcare, technology, financial, industrials and utilities (from Underweight) sectors.
- The firm is Marketweight the energy, materials and consumer staples sectors.
- BAML is Underweight consumer discretionary, communication services and real estate.
- Stocks with high free cash flow are viewed more positively than stocks with increasing capex, high labor intensity and leverage.
- "Our 2019 year-end target for the S&P 500 is 2900, where we believe the peak in equities is likely before the end of 2019," writes analyst Savita Subramanian.
- The firm also calls bonds a compelling alternative for equities given their rise in yields.
- ETFs: SPY, DIA, VOO, SH, SDS, IVV, SSO, XLI, SPXU-OLD, UPRO, SPXL, RSP, SPXS, VFINX, UDOW, DOG, DXD, SDOW, DDM, VIS, EPS, FIDU, IFLY, IYJ, FXR, BXUB, AIRR, SPLX, RGI, UXI, SPUU, BXUC, SFLA, SPDN, SPXE, SIJ, SPXT, EDOW, PPLC, UDPIX, JHMI, SPXV, RYARX, SPXN, INDF, DMRL, RVRS, USMC