Investing.com -- Markets have been on the backfoot of late, but BofA says that the bulls remain in control, underpinned by resilient growth, supportive policy, and persistent disinflation outside of the U.S.

"Global Proprietary Signals continue to indicate a resilient growth outlook, bolstered by greater involvement from the laggards as the manufacturing cycle picks up the steam," BofA strategists said in a note.

The strategists highlighted that the unexpected weakness in markets in seasonally strong December-January has given way to a renewed uptrend, affirming that the 28-months old bull market remains firmly in place.

The global economic backdrop provides a fertile ground for markets to continue advancing, they added, pointing to a recovery in U.S. manufacturing PMI, surging consumption in Japan and China, and bullish consensus on global corporate earnings growth.

While acknowledging that inflation is top of mind for investors, BofA believes that concerns are overblown.

"While there are legitimate reasons for discomfort on potential higher inflation, we should not be overly concerned. There are no indications that a recurrence of the inflation trends observed in 2021-22 is imminent," they added.