LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LondonWallet
No Result
View All Result

Bank of America’s Hartnett says sell into rallies until the S&P 500 falls further

Chaim Potok by Chaim Potok
April 11, 2025
in Investing
Bank of America’s Hartnett says sell into rallies until the S&P 500 falls further
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


Investors should be selling into market strength until further notice, according to Bank of America’s top market expert. With investors on edge over President Donald Trump’s tariffs and all of their ramifications, the best bet is to wait for policymaker action before putting more money to work, said Michael Hartnett, the bank’s chief investment strategist. Bank of America’s recommendation is to “sell the rips,” Hartnett said in his weekly client note looking at money flows on Wall Street. Further, he advocates being long on the 2-year Treasury note despite the recent jump in yields and going short the S & P 500 “until a. Fed cuts break liquidation cycle [of higher yields, lower stocks and a declining U.S. dollar], b. US-China trade war eases to reverse recession momentum, c. US consumer purchasing power rises via real wages, < $3/gallon gas prices, big mortgage refi.” Unpacking that statement, the first part indicates waiting for the Federal Reserve to lower its benchmark borrowing rate, an event traders think will not happen until June. The other issues refer to the escalating tensions between Trump and Chinese President Xi Jinping as the two sides are engaged in a tit-for-tat tariff battle, and looking for inflation-adjusted worker pay to rise as gas prices fall, while consumers are able to refinance mortgages at lower rates. When those moments could happen is far from clear, but Hartnett said he sees 4,800 on the S & P 500 as a good reentry point “to buy risk assets if policy panic makes recession short/shallow.” That would represent about a 9% drop from Thursday’s close and a 22% tumble from the Feb. 19 peak. .SPX YTD line S & P 500 in 2025 Hartnett noted that sentiment indicators show investors are “insanely bearish” though that has not been borne out in money flows to equities. Part of that could be because Bank of America expects any recession to be “short/shallow,” with the impact eased by Fed rate cuts. However, he did point out that political risks remain with Trump’s approval rating dropping. “So both bond market and electoral base now pressing for US trade policy reversal; big risk is loss of political capital jeopardizes Trump admin ability to cut corporate taxes in H2 … latter would cause last bulls to capitulate,” Hartnett said. For portfolio positioning, he recommends long-dated U.S. corporate bonds, dividend-paying stocks and assets that benefit on U.S. dollar weakness.



Source link

You might also like

Top Wall Street analysts are upbeat about these dividend-paying stocks

JPMorgan’s top short ideas for the second half including Tesla

Earnings playbook: The reporting season kicks off with big banks and Netflix on deck

Share30Tweet19
Previous Post

Pakistan proposes compliance-based crypto regulatory framework — Report

Next Post

Bitcoin sellers tap out, clearing the path for a fresh run at new all-time highs

Chaim Potok

Chaim Potok

Recommended For You

Top Wall Street analysts are upbeat about these dividend-paying stocks
Investing

Top Wall Street analysts are upbeat about these dividend-paying stocks

July 13, 2025
JPMorgan’s top short ideas for the second half including Tesla
Investing

JPMorgan’s top short ideas for the second half including Tesla

July 13, 2025
Earnings playbook: The reporting season kicks off with big banks and Netflix on deck
Investing

Earnings playbook: The reporting season kicks off with big banks and Netflix on deck

July 13, 2025
He bought a side table from Mexico. Tariffs added a surprise ,170 fee at delivery
Investing

He bought a side table from Mexico. Tariffs added a surprise $1,170 fee at delivery

July 13, 2025
Next Post
Bitcoin sellers tap out, clearing the path for a fresh run at new all-time highs

Bitcoin sellers tap out, clearing the path for a fresh run at new all-time highs

Related News

Higgins Homes faces manslaughter charges | Property Week

Higgins Homes faces manslaughter charges | Property Week

May 13, 2025
Matrixport doubles down on K Bitcoin year-end prediction

Matrixport doubles down on $45K Bitcoin year-end prediction

October 25, 2023
Twitter to impose daily limits on DMs for unverified accounts, citing an effort to ‘reduce spam’

Twitter to impose daily limits on DMs for unverified accounts, citing an effort to ‘reduce spam’

July 22, 2023

Browse by Category

  • Business Finance
  • Crypto
  • Industries
  • Investing
  • Markets
  • Opinion
  • Real Estate
  • UK

London Wallet

Read latest news about finance, business and investing

  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2025 London Wallet - All Rights Reserved!

No Result
View All Result
  • Checkout
  • Contact
  • Home
  • Login/Register
  • My account
  • Privacy Policy
  • Terms and Conditions

© 2025 London Wallet - All Rights Reserved!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?