10 reasons to stay long US equities – BofAML

Despite the likely rise in yields, and the Fed turning relatively more hawkish, investors should consider remaining invested in US equities. The continuing uptrend in corporate profits and economic activity remain a powerful support for stocks, strategist at the Bank of America Merryl Lynch report.

Market’s drivers to transition toward business spending, productivity and shifting consumer spending toward services

“First, no economy in the world is as large, diverse and dynamic as the US economy.”

“Second, contrary to popular lore, the US remains a global manufacturing superpower.”

“Third, the US remains among the largest exporters of goods and services in the world.”

“Fourth, the US remains a magnet for foreign capital.”

“Fifth, America remains the home to the world’s top global brands.”

“Sixth, while US brands are emblematic of America’s ‘soft power’, America’s unsurpassed military supremacy speaks to ‘hard power’ or the fact that the US spends more on defense than the next 10 countries combined.”

“Seventh, while China has made significant technological strides over the past decade, the US remains the world's technology leader owing to the nation’s risk-taking, not-afraid-to-fail entrepreneurial culture that underpins America’s leadership in both technology and innovation.”

“Eighth, the top-ranked universities in the world are in the US.”

“Ninth, while the ‘Made in America’ financial crisis was touted by many as the death knell of the US dollar, nothing of the sort has occurred over the past few years.”

“Finally, the US still ranks as one of the most competitive economies in the world.”