Bank of America strategist Michael Hartnett has reiterated his call to sell US stocks and warned that technology and AI are creating a bubble.
He strategist of Bank of America Michael Hartnett did it again Sell alert on US stocks and told that Technology and AI are creating a bubble, without forgetting that The Federal Reserve’s interest rate hike is not over According to Ksenia Galochko and Yahoo Finance.
Regarding the last mentioned, Harnett also warned that Bond growth represents a risk.
Hartnett, who correctly predicted last year that fears of a recession would fuel an exodus from stocks, Recommends sell S&P 500 at current index level at 4,200,
He wrote, “If the Fed accidentally stops raising rates this year, US bond yields will be reflected in a move above 4%, and if so, we certainly haven’t seen the last Fed rate hike of the cycle.” ” In a note on Friday, strategists led by Hartnett. The 10-year US Treasury yield was trading at around 3.6% on Friday after rising last week amid the debt ceiling debate.
BofA said AI is one for now “Baby Bubble”, and pointed out that in the past bubbles always started with “easy money” and ended with rate increases, he quoted text of 1999 when one Internet stocks rise on strong economic data He reset the Federal Reserve monetary crunch And the bubble for tech stocks burst nine months later.
“The biggest pain in the next 12 months is that The fed funds rate will rise to 6% instead of falling to 3%as the market expects a rate cut,” according to strategists.
US stocks rose on Thursday Optimism about Washington’s moves to resolve the debt-limit impasse outweighs concerns the Fed will not suspend its rate-hike campaign next month, Nasdaq 100 reaches highest level since April 2022 With its 14-day Relative Strength Index closing in overbought territory for the first time since early February. Hi-tech indicator up 26% this yearOne of the best performers in global indices.
“Las Tech stocks had a fifth week of innings When Financials witness outflows in third weekAnd this This is the biggest withdrawal from REITs since November 2022.Added BOFA citing data from EPFR Global,
en general, There was an outflow of $7.7 billion from stock funds in the week ended May 17.When Bonds have seen inflows in the past eight weeks,
Bank of America It closed Thursday at $28.54 on the rise and remained above the 70 and 200 period moving averages. Meanwhile, EI indicators are mostly bearish.
