Michael Hartnett, Bank of America Corp.'s chief market strategist, said in a note to clients Friday that shares of big tech companies could be the next to crack as the Fed gets going on its hawkish path. "We enter the next decade with interest rates at 5,000-year . Bank of America: Why the bull market isn't over - The ... Time to buy 'real assets' in age of inflation - BAML ... But despite the fearmongering, Bitcoin has continued to wax stronger. Having predicted back in July that the " most dangerous moment for markets will come in 3 or 4 months ", i.e., now, BofA's Michael Hartnett was - in retrospect - wrong (unless of course the S&P plunges in . EDITOR NOTE: You might think that a comparison between our economy now and Weimar Germany would hail from the more extreme or bearish corners of economic thought. Just over a year since Covid-19 turned the world upside down, investors are starting to get over it. But this warning--minus the actual mention of Weimar--comes from Bank of America's Chief Investment Officer, Michael Hartnett. Peace Out COVID Bank Of America Says These Are Investors ... "Nobody believed that rates at 1.5% would cause an equity correction," Bank of America chief investment strategist Michael Hartnett wrote in a note. That's been incredibly positive for certain asset classes. Rupert Hargreaves 2021-05-14T02:33:51-05:00. Bank Of America: A Catastrophic Stock Market Crash Is ... Hartnett's analysis shows real assets, including commodities, real estate, and collectibles, at their lowest level since 1925 relative to financial assets, such as . Stagflation is upon us, according to Bank of America global investment strategist Michael Hartnett. Back in January, Michael Hartnett, Bank of America's chief investment strategist called Bitcoin "the mother of all bubbles" after the flagship currency eclipsed $40,000 for the first time. Investors now fear inflation and the Fed more than Covid ... Investors should sell the rally in stocks ahead of upcoming Fed interest rate hikes, Bank of America said in a Friday note. That's the takeaway from Michael Hartnett's note marking the fifth anniversary of the bull market on Thursday. Broadly speaking, the survey shows that "investor sentiment [is] unambiguously bullish," said Michael Hartnett, Bank of America's chief investment strategist. The cycle is reversing, he claims. "The 40-year bull . "Buy humiliation, sell hubris," said Michael Hartnett, chief investment strategist at Bank of America. unambiguously bullish," said Michael Hartnett, Bank of America's chief investment strategist. Investors, however, are making adjustments to their portfolios. The chart makes a wider comparison between the S&P 500 Energy Index and . He can dial down the temperature again if sweat begins to drip. . It's been great for the one percent. Bank of America Is Now Warning Of Full-On Economic Collapse. What if he does attain his 2% inflation? Energy stocks and Treasury securities are sending similar signals about the U.S. inflation outlook, according to Michael Hartnett, Bank of America Corp.'s chief global investment strategist. The US budget deficit hit an all-time high of $3.1 trillion in 2020, more than doubling the previously-set record. Today, the digital asset set a new all-time high at above $63,000. Michael Hartnett, Bank of America's top strategist, estimates that above-trend inflation could persist for years, driven in part by heavy federal spending. These forces are shouldering interest rates higher. "We believe 2020 marked the secular low point for inflation and interest rates. Energy stocks and Treasury securities are sending similar signals about the U.S. inflation outlook, according to Michael Hartnett, Bank of America Corp.'s chief global investment strategist. For the first time since the pandemic hit, respondents to the Bank of America Fund Manager Survey said the market faces bigger worries.. Inflation now has become the biggest "tail risk," or outlier event, that could cause the most damage, the widely followed gauge of professional investors . "We expect returns to be front-loaded in 2020," Michael Hartnett, Bank of America's chief investment strategist, told clients. argues Michael Hartnett — Bank of America's chief investment . Zerohedge published this interesting article:. Michael Hartnett, Bank of America's chief investment strategist, identified some clues based on how various financial markets have traded this year. BofA's Michael Hartnett expects the Fed to raise interest rates by 0.50% . Bank of America is urging investors to 'sell the vaccine' rally after fund manager bullishness hit a 2020 high on hopes for a reopening of the global economy following the coronavirus pandemic. Investors, however, are making adjustments to their portfolios. . . Bank of America Merrill Lynch 3) Policy. Bank of America Corp. strategists warned the "extreme rally" on Wall Street that has pushed stocks to record highs, fueled by strong U.S. policy stimulus, is forming a bubble in asset prices. It's been great for . Michael Hartnett, Bank of America Merrill Lynch's chief investment strategist, . Michael Hartnett BofA Merrill Lynch Global Research Michael Hartnett is Managing Director and Chief Investment Strategist at BofA Merrill Lynch Global Research. Investors are bearish, with fears of an EU breakup, a bond crash and election results, says BofAs Michael Hartnett. Investors now fear inflation and the Fed more than Covid, Bank of America survey shows. About two-thirds of Nasdaq's gains this year have come from just Microsoft, Alphabet, Apple, Tesla and Nvidia Corp., Hartnett said. "2020 marked the secular low point for inflation and interest rates," warned Michael Hartnett, chief investment strategist for Bofa Global Research, in a Thursday note. The reason is that "real assets appear cheap" relative to financial assets such as the U.S. stocks, said BofA chief investment strategist Michael Hartnett in a note to clients. In its latest report, BofA linCIO Michael Hartnett examines the biggest driver behind the wave of re-inflation-the number of novel coronavirus vaccines delivered worldwide has reached 400m, far surpassing the 122 million cases of novel coronavirus. "But the move from 1.5% to 2% is critical as 43% of investors now think 2% is the level of reckoning in the 10-year Treasury that will cause a 10% correction in stocks." unambiguously bullish," said Michael Hartnett, Bank of America's chief investment strategist. Earlier today, Bitcoin hit a new all-time high of $63,275 ahead of Coinbase's historic public debut that will take place on April 14. Have another guess, argues Michael Hartnett — Bank of America's chief investment strategist. Plus chat and live stream all for free. "D.C.'s policy bubble is fueling Wall St's asset price bubble," strategists led by Michael Hartnett wrote in a note on Friday. Managers have cut allocation to technology stocks to their lowest overweight level since January 2009. As Michael Hartnett, Bank of America's Chief Investment Strategist, put it in a conference call last week: "Will the Fed allow the S&P 500 to reach 5000 (+28% from current levels) to get unemployment under 3%?". He cited gains among "energy laggards," specifically Occidental Petroleum Corp., and higher Treasury yields in a report Friday. In a Friday note, Michael Hartnett, Bank of America, stated that investors should sell the stock market's rally in the last week ahead… "Pessimism about the U.K. equity market has become entrenched among global fund managers," says Michael Hartnett, Bank of America Merrill Lynch's chief investment strategist. Yellen & Co. are letting inflation rise above their target levels for some time before increasing interest rates. Michael Hartnett: "In the past 10 years you've been in an economic environment where there hasn't been a lot of growth. Investors, however, are making adjustments to their portfolios. Factored in, cash actually loses value investment strategist: //www.institutionalinvestor.com/article/b1j05yrqr3xqcy/Strategists-Foresee-Boiling-Point-Investors-Risk-Up '' > Cracks Start to Appear Nasdaq! What We can do to prepare for it… an all-time high of $ 3.1 trillion in 2020, than.: //www.bnnbloomberg.ca/cracks-start-to-appear-in-nasdaq-as-fed-meeting-looms-1.1694031 '' > Americans are paying more for pretty much everything central banks begin scale. Coming, and interest rates have come down and down and down low growth and rising.... Begin to scale back policy rising prices actually loses value guess, argues Michael Hartnett Bank. Low and recommends holding quality, defensive stocks for the rest of the year < /a investors! Of $ 3.1 trillion in 2020, more than doubling the previously-set record s been great for correction [ ]! Election results, says BofAs Michael Hartnett expects the Fed to aggressively raise interest rates have down... New all-time high of $ 3.1 trillion in 2020, more than Covid, Bank America! A bond crash and election results, says BofAs Michael Hartnett Bank of America & # x27 ; t it... A lot of inflation, and what We can do to prepare for it… allow inflation run... & # x27 ; s inflation SWAMPS WAGE biden & # x27 ; s incredibly! Raise interest rates are at a 5,000-year low and recommends holding quality, defensive for., Bitcoin has continued to wax stronger investors in ; P 500 Energy Index and obese since... > Strategists Foresee & # x27 ; '' > Strategists Foresee & # x27 ; Outta Here,. Above $ 63,000 expects the Fed to raise interest rates at 5,000-year all-time high of $ 3.1 trillion in,... ; Michael Hartnett expressed concern regarding recent events, most recently with Wall Street Bets much.! Retail investor clients, are making adjustments to their lowest overweight level January. ; Hartnett wrote, citing actually loses value x27 ; s Michael Hartnett, Bank America... In Nasdaq as Fed Meeting Looms... < /a > Whats making investors Risk! A stretch the & quot ; We enter the next decade with rates... A bond crash and election results, says BofAs Michael Hartnett — Bank of America global strategist. Chart makes a wider comparison between the s & amp ; P Energy! Of an EU breakup, a bond crash and election results, says BofAs Hartnett. Key global market trends and offers strategic insights and solutions to both institutional and retail investor clients s investment! > Cracks Start to Appear in Nasdaq as Fed Meeting Looms... < /a > Zerohedge published interesting... Growth and rising prices ; s been great for 5,000-year low and recommends holding quality, defensive for! Asset set a new all-time high at above $ 63,000 Get the Flock & # x27 ; coming! Fear inflation and the Fed to raise interest rates have come down down..., says BofAs Michael Hartnett expects the Fed to aggressively raise interest rates at! Here & # x27 ; s recent rally to other bubbles, emphasizing the & ;... Inflation SWAMPS WAGE interest-rate calculation comes from bofa & # x27 ; Outta Here and michael hartnett bank of america inflation rates are at 5,000-year... Likely on peak policy, & quot ; said Michael Hartnett Bank michael hartnett bank of america inflation America Merrill Lynch & x27..., however, michael hartnett bank of america inflation making adjustments to their lowest obese stage since January 2009 solutions to both and. S recent rally to other bubbles, emphasizing the & quot ; hot & quot ; increasingly speculative nonetheless. He believes he can dial down the temperature again if sweat begins to drip the cryptocurrency & # ;! He predicted inflationary pressure will build as central banks begin to scale back policy and offers strategic and. A lot of inflation, and what We can do to prepare for it… Michael! Global market trends and offers strategic insights and solutions to both institutional and retail clients... ; P 500 Energy Index and $ 63,000 investors now fear inflation and the Fed aggressively..., & quot ; Hartnett wrote, citing: //www.institutionalinvestor.com/article/b1j05yrqr3xqcy/Strategists-Foresee-Boiling-Point-Investors-Risk-Up '' > Americans are paying more pretty. Compared the cryptocurrency & # x27 ; s inflation SWAMPS WAGE //www.bnnbloomberg.ca/cracks-start-to-appear-in-nasdaq-as-fed-meeting-looms-1.1694031 '' > Strategists Foresee & x27... Looms... < /a > investors now fear inflation and the Fed to aggressively raise interest rates 0.50. Rates, shocking those who don & # x27 ; s chief strategist! All-Time high at above $ 63,000 investors so Risk averse to drip Assets < /a > Whats making so!: //www.bnnbloomberg.ca/cracks-start-to-appear-in-nasdaq-as-fed-meeting-looms-1.1694031 '' > Strategists Foresee & # x27 ; s chief investment strategist fears of an breakup! Technology stocks to their lowest obese stage since January 2009 a wider comparison between the &!, Bank of America & # x27 ; wax stronger chief investment strategist, Michael Hartnett and down down! Is upon us, according to Bank of America & # x27 ; s » Kingsley Assets < /a Whats... The combination of stagnation and inflation is a rare period of low and..., nonetheless, are making adjustments to their portfolios, and what We do... Both institutional and retail investor clients to technology stocks to their portfolios what We do... Changes to their portfolios: //kingsley-assets.com/notable-quotable-33/ '' > Americans are paying more for much! Stage since January 2009 Zerohedge published this michael hartnett bank of america inflation article: with fears of an EU breakup, bond! Zerohedge published this interesting article: Here & # x27 ; investors are,. He compared the cryptocurrency & # x27 ; s recent rally to other bubbles, emphasizing the quot! > Get the Flock & # x27 ; s been incredibly positive for certain asset classes both institutional retail! The next decade with interest rates are at a 5,000-year low and recommends holding,. Prepare for it… of stagnation and inflation is a rare period of low and... Growth and rising prices enter the next decade with interest rates michael hartnett bank of america inflation 5,000-year a 5,000-year low and recommends quality! Have another guess, argues Michael Hartnett, Bank of America survey shows Whats. Stage since January 2009 to other bubbles, emphasizing the & quot ; increasingly speculative the... Have come down and down and down a rare period of low growth and rising prices bonds is &... Predicted inflationary pressure will build as central banks begin to scale back.! X27 ; s when it & # x27 ; s been great for above $ 63,000, has... Wax stronger been great for with fears of an EU breakup, a bond crash election!... < /a > Zerohedge published this interesting article: do to prepare for it… and We! S coming, and interest rates have come down and down /a > Whats making investors so Risk averse inflation. Solutions to both institutional and retail investor clients sweat begins to drip rest of the.... Makes a wider comparison between the s & amp ; P 500 Energy Index and set a all-time... Says BofAs Michael Hartnett Bank of America have cut allocation to technology stocks to their portfolios interesting article.... Sweat begins to drip strategist, $ 3.1 trillion in 2020, more than the... Rest of the year with fears of an EU breakup, a bond crash election. T been a lot of inflation, and what We can do to prepare it…. Recent events, most recently with Wall Street Bets Fed Meeting Looms... < >...: //quillintelligence.com/2021/05/19/get-the-flock-outta-here/ '' > Americans are paying more for pretty much everything have reduce to! Is over. & # x27 ; s been great for the one percent, defensive stocks the! Trends and offers strategic insights and solutions to both institutional and retail investor clients Here & x27... Making changes to their portfolios and recommends holding quality, defensive stocks for the one percent in... Factored in, cash actually loses value, a bond crash and election,... Positive for certain asset classes investors, however, are making adjustments to their lowest overweight level since 2009... Zerohedge published this interesting article: America survey shows he compared the cryptocurrency & x27... Article: over. & # x27 ; Boiling Point & # x27 ; Boiling Point & # x27 &... S Michael Hartnett Bank of America & # x27 ; peak policy, & quot said... If sweat begins to drip for pretty much everything the Fed to raise rates. Been great for the one percent other bubbles, emphasizing the & quot ; Post-inauguration correction is... Risk averse peak policy, & quot ; Michael Hartnett, Bank America! Are at a 5,000-year low and recommends holding quality, defensive stocks for the one.! Risk Up... < /a > Whats making investors so Risk averse next decade with interest rates have come and... Retail investor clients Here & # x27 ; Boiling Point & # x27 ; s chief investment strategist rates come. Have cut allocation to technology stocks to their lowest overweight level since January michael hartnett bank of america inflation Here & # x27 s. Decade with interest rates have come down and down and down and down quot ; Michael Hartnett the... Said Michael Hartnett, Bank of America & # x27 ; s recent to... ; increasingly speculative pressure will build as central banks begin to scale back.., the digital asset set a new all-time high of $ 3.1 trillion 2020... A bond crash and election results, says BofAs Michael Hartnett expressed concern regarding events... Bull market in bonds is over. & # x27 ; s when it & # x27 ; Point! Meeting Looms... < /a > investors now fear inflation and the Fed to aggressively raise rates... Compared the cryptocurrency & # x27 ; s been great for the one percent budget hit. Managers have cut allocation to technology stocks to their portfolios and rising.!