December 5, 2017 / 5:10 PM / a year ago

BRIEF-BofA Merrill Lynch Global Research Issues its 2018 Market Outlook

Dec 5 (Reuters) - Bofa Merrill Lynch Global Research :

* BofA MERRILL LYNCH GLOBAL RESEARCH ISSUES ITS 2018 MARKET OUTLOOK

* SAYS S&P 500 EXPECTED TO CLIMB TO 2800 NEXT YEAR, DESPITE SHARP MID-YEAR CORRECTION

* SAYS INFLATION COULD BE A “GLOBAL GAME-CHANGER” FOR STOCK AND CREDIT MARKETS IN 2018

* SAYS FORECASTS MODEST RETURNS IN EQUITIES & CREDIT, NEGATIVE BOND RETURNS, A STRONGER DOLLAR IN 2018

* SAYS ALSO FORECASTS HIGHER LEVELS OF VOLATILITY AND TIGHTER CREDIT SPREADS IN 2018

* SAYS PASSAGE OF U.S. TAX REFORM IS MAIN UPSIDE RISK TO ECONOMIC GROWTH, WITH FAR-REACHING EFFECTS

* SAYS OVERALL OUTLOOK FOR THE YEAR AHEAD IS MACRO BULLISH, SO MUCH SO THAT “WE’RE ULTIMATELY MARKET BEARISH”

* SAYS SENTIMENT IS NOW A MORE IMPORTANT DRIVER OF S&P 500 THAN FUNDAMENTALS

* SAYS SENTIMENT SUGGESTS THERE IS STILL ROOM FOR STOCKS TO MOVE HIGHER IN THE NEAR TERM

* SAYS HAVE ENTERED THE LATER STAGE OF A LONG BULL MARKET Source text for Eikon:

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