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Investors are ‘too greedy’ for rate cuts, BofA strategists say
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Bank turmoil may have bigger effect on small businesses: BofA
Bank of America Corp. strategist Michael Hartnett — one of the most bearish voices on Wall Street last year — says investors should sell any rally in stocks as fund flows don’t yet reflect deep enough concern about a looming recession.
“Sell the rip in stocks” given that there is “no equity capitulation,” Hartnett wrote in a note, adding that the “market’s too greedy for rate cuts and not fearful enough of recession.”
The strategist, who correctly warned of a stock exodus in 2022, recommended selling the S&P 500 above 4,100 points — about 3.5% above its last close. He flagged that equities were vulnerable to plumbing new lows in the absence so far of “extreme bearish positioning, extreme economic pessimism and policy panic.”
US stocks have been roiled in the past week as the failure of Silicon Valley Bank and Signature Bank sparked concerns about a potential financial crisis. The rout spread to