The global bull market will run through 2021 with only small pullbacks, Ned Davis Research predicts

Traders on the floor of the New York Stock Exchange.
Source: New York Stock Exchange

Global equities will rally through the remainder of 2021, as the economic recovery strengthens, according to Ned Davis Research.

The firm entered 2021 overweight equities and underweight bonds, analysts said in a research report issued this week. That's likely to persist, though they're watching for signs of excessive optimism that could lead to complacency and leave global equities "vulnerable to disappointment."

This year, earnings reports have been beating expectations at a rising rate, but that momentum could begin to slow. Even so, the firm expects setbacks in the single digits, rather than a double-digit bear market.