Federal Reserve policy and bearish positions from investors make stocks and commodities attractive in the short term, according to BofAML.
Now is the time to buy risk assets, a Bank of America Merrill Lynch strategist told CNBC on Tuesday.
"When investors are this bearish, historically, it's been a great time to buy risky assets like stocks and commodities," BofAML global investment strategist Jared Woodard said on "Woodard stressed he was looking at a one-to-three-month investment timeline, citing larger macro risks in the economy for next year.
But with investors already in bearish positions and favorable policy coming from the Federal Reserve, which cut interest rates in July for the first time in a decade and isat its September policy meeting, Woodard said he sees significant short-term upside. "Historically, you've had significant upside in the short term, on average around 6% returns on global equities on a three-month horizon, when sentiment is this bearish," Woodard said.
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