Hartnett表示，“风险并没有好到哪里去，因此投资者被迫追逐”涨势。不过，他警告说，“泡沫风险”正在卷土重来，并建议逢低买进债券和黄金。The excitement in the stock market after the Fed's interest rate cut has intensified the bubble risk, making bonds and gold attractive tools to resist economic recession or inflationary pressures.
According to financial news source, PP, Michael Hartnett, the strategist from Bank of America, warned that the excitement in the stock market after the Fed's interest rate cut has intensified the bubble risk, making bonds and gold attractive tools to resist economic recession or inflationary pressures.
Last year, this strategist was primarily bearish on the US stock market and previously expressed a preference for bonds in 2024. He stated that there is currently an expectation that the Fed will further relax policies and the earnings of S&P 500 index constituent companies will grow by around 18% by the end of 2025.
Hartnett said, "The risks haven't gone away, so investors are forced to chase the trend." However, he warned that the "bubble risk" is making a comeback and advised buying bonds and gold on dips.
In an economic [context], stocks and commodities outside of the USA are good symbols, and the latter is a tool to hedge against inflation. He stated that international stock prices are low and are starting to outperform US stocks.But after the bursting of the internet bubble and the Fed's rate cut in 2001, the ROI dropped by more than 10%.The strategist also stated that in an economic [context], stocks and commodities outside of the USA are good symbols, and the latter is a tool to hedge against inflation. He stated that international stock prices are low and are starting to outperform US stocks.
Global stock markets rose last Thursday as the market optimistically believed that the 50 basis point rate cut by the Federal Reserve timely opened a loose monetary policy cycle and prevented a recession in the US economy. The S&P 500 Index, which had fallen from its level in July, returned to its historical high. The technology-heavy NASDAQ 100 Index also surged 2.6%, marking its largest single-day gain in over a month.
After the rate cut by the Federal Reserve, the S&P 500 Index reached a new all-time high.
However, signs of caution appeared in the market on Friday.
A survey conducted earlier this month by Bank of America found that investor confidence improved due to bets on an economic rebound. However, a US economic recession and accelerated inflation are considered to be the biggest tail risks for the market.
Hartnett previously warned that there might be a bubble in technology stocks during the AI frenzy.