Stock Surge Is a Bear-Market Trap With Curve Inverted, BofA Warns
- S&P has managed to rally despite ‘clearly weaker fundamentals’
- Softer inflation could lead to upside but not likely to happen
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The 11% surge in U.S. stocks in the past two weeks has the hallmarks of a bear-market rally that might give way to deeper losses.
That’s the conclusion of analysts at Bank of America, who say warning signs are flashing for a market that has climbed “despite clearly weaker fundamentals,” including a Federal Reserve bent on raising rates sharply this year to battle persistent inflation.