The equity hitchhiker's guide to the global galaxy

Bank of America Merrill Lynch's latest 'equity hitchhiker's guide to the global galaxy' has outlined a range of prospective trades for investors in the coming months.

The bank's equity strategy analysts have assembled a variety of metrics and recommendations based on the performance, composition, valuation and earnings of the regions, countries and sectors that make up the MSCI All-Country World index (ACWI). As of 2 August, the index was trading 27% from its all-time high, on a forward P/E ratio of 11.1, a dividend yield of 2.9% and a 12.3% return on equity. Inevitably, those headline figures mask a range of different opportunities and pitfalls for income, growth and value investors, as outlined below: Income The search for yield has made in...