BofA Merrill Lynch Global Research released its 2013 Year Ahead market outlook, saying that a cloud of uncertainty is likely to overhang the markets through a painful and protracted resolution of the U.S. fiscal cliff. However, global economic growth is expected to pick up steam in the second half of the year, ultimately surprising on the upside and pushing the S&P 500 Index to 1600, a new all-time high.

At the annual BofA Merrill Lynch 2013 Year Ahead outlook news conferences in New York and London, analysts from the top-ranked global research firm said the year ahead could be “lucky ’13” for cautious, savvy investors. The beginning stages of a great rotation in the markets create opportunities for cyclical and undervalued asset classes poised for recovery.

“This time last year, the risks to global growth were to the downside as the European debt crisis, China hard landing fears and the U.S. fiscal cliff clouded the economic outlook,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research. “For 2013, we expect the resolution of fiscal policy issues, another year of accommodative central bank actions and improving corporate profits to skew the macro and market risks to the upside.”

BofA Merrill Lynch analysts outlined ten macro calls on which they are basing their 2013 outlook.

To read the full BofA Merrill Lynch 2013 Year Ahead outlook click here.