Time to turn 'structurally bullish' on emerging stocks: BAML
LONDON (Reuters) - Bank of America Merrill Lynch (BAML) said on Tuesday it was turning "structurally bullish" on emerging equities, revising its five-year long negative view on the sector.
"We are reversing our five-year bearish views on Asia and emerging markets...We now believe investors should get out of the bunker and off the fence and make a longer-term bullish commitment to both Asia ex-Japan and EM equities," BAML told clients.
"We are at an inflection point that is likely to challenge the winners of the past five years and boost the losers."
The bank cited seven reasons for its change of stance, including cheap share valuations, competitive currencies and easier Chinese monetary policy. It also said emerging companies' miserable run of earnings looked set to end due to improving trade and lower capex.
(Reporting by Sujata Rao; editing by Karin Strohecker)
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