Bank of America analysts said the stock market has a lot in common with the run-up to recent collapses in 2000 and 2008 and faces further losses this year.
Until the Federal Reserve "reintroduces fear" by signaling that interest rates need to hit 6% to break sticky inflation and unemployment exceeds 4% signaling a recession, stocks can remain elevated, and credit spreads can remain low, Hartnett wrote.
In the meantime, investors are likely to chase the market higher "from momentum to contrarian plays, from deflation to inflation assets, from DM to EM stocks, from no landing plays to hard landing play."The gloomy forecast comes after a brutal year for the stock market, its worst since the 2008 financial crisis. All three indexes tumbled in 2022, snapping a three-year win streak. The Dow Jones Industrial Average ended the year down 8.8%, the best of the three. The S&P 500 sank 19.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Exoplanet over 2000°C has vaporized metal in its atmosphere | Digital TrendsThe puffy, scorching-hot planet has elements in its atmosphere that would normally form rocks, but are so hot that they have vaporized.
Read more »
Big stock market rally to be followed by 'big collapse,' says BofA's HartnettThis is no 'shiny new bull market,' contends Bank of America's Michael Hartnett.
Read more »
Bank of America makes $500 million equity push for minority and women-led fundsBank of America has allocated over $500 million in equity investments to fund managers led by minorities and women.
Read more »
US Army and America: Together accomplishing big things'Through its 248 years of proud history, the Army has supported the nation, by fighting its wars and by supporting society with leadership and dedication. Happy 248th, Army!' -Thomas Spoehr
Read more »
Treat Big Tech like Big Tobacco to protect our kidsA surgeon general's warning on smoking ushered in momentous change in America. Now, a new surgeon general is warning us about Big Tech's dangerous impact on our children.
Read more »
Central Banks Successfully Test Over 30 CBDC Use Cases, Including Offline PaymentsNEW: BIS_org and bankofengland have tested over 30 central bank digital currency (CBDC) use cases, including offline payments, using an API layer to connect public and private infrastructures. camomileshumba reports
Read more »