BCA Research insists that the cyclical uptrend in global equities is not over, despite recent weakness.

“Credit market turmoil is rapidly curbing investor risk appetites and presenting an ongoing threat for equity markets,” the independent research firm says in a research brief.

“However, the overall global macro backdrop remains decent, liquidity is still abundant and valuations are supportive, suggesting that the bull market is not yet over.”

“Our models indicate that EPS growth will remain positive next year, albeit at a slower pace. Moreover, we suspect that the Fed will ease again at its next meeting and other major central banks may soon follow suit, helping calm investors and providing fuel for multiple expansion,” BCA adds.

Ultimately, BCA Research predicts that global stock prices will be higher in six to 12 months.