The bank said it is more bullish this year on stocks and commodities after huge outflows of investor cash from those markets and also because central banks were loosening monetary policy in response. "Trade war thus far caused lower rates, not recession," the strategists, led by Michael Hartnett, said in the report.
The call comes as investors continue to sell equities and buy bonds and gold, which are considered safe during times of economic and political strife, amid worries over trade tensions and a global economic slowdown.