Bet on India, China: Bank of America Merrill Lynch

Michael Hartnett, Bank of America Merrill Lynch says the global investment backdrop is shifting from one of falling rates & rising earnings to one of rising rates & rising earnings in 2015. “That means the optimum backdrop for asset prices is largely behind us, as is the era of excess returns and excessively low volatility,” he adds.

“Our forecast of higher US growth, yield & dollar is not conducive to emerging markets (EM) and commodity outperformance but China is reforming & reflating both asset classes and offer abundant opportunities for value investors. We like China, India at current levels,” says Hartnett.