Skip to content

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
Video player cover image
WATCH: Erin Browne of Pimco discusses the Treasury yield curve’s inversion, its implications for financial markets, and her investment strategy.Source: Bloomberg

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.