Flash: Tapering prospects and stocks - BAML

FXstreet.com (Barcelona) - Martin Mauro and Cheryl Rowan, co-heads of the Merrill Lynch Wealth Management Investment Strategy Group offered commentary around the prospects of the Fed tapering.

Key Quotes:

“Equity market fundamentals keep us optimistic”.

“As Federal Reserve-injected liquidity begins to taper off, US stocks should be more dependent on fundamentals”.

“Q2 earnings appear solid and, just as important, revenues are improving. Valuations remain attractive despite the equity market's strong return year-to-date”.

“Corporate balance sheets are flush with cash, allowing for capital allocation strategies that often benefit shareholders”.