The 70s are proof investors shouldn’t give up on that Fed pivot, says the bank
Stagflation is coming, but with that comes a silver lining for some equities if history is any guide.
That’s according to strategists at Bank of America, who see a macro backdrop that continues to reflect the dreaded economic combo of high inflation and stagnant growth.
“Inflation and stagnation was ‘unanticipated in 2022…hence $35 trillion collapse in asset valuations; but relative returns in 2022 have very much mirrored asset returns in 1973/74, and the 70s remain our asset allocation analog for 2020s,” sa