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BofA Says Brace for Recession Shock After Worst Rout in 52 Years

  • Both stocks and bonds were rocked by outflows this week
  • Bull and bear indicator remained at “maximum bearish”
Updated on

A “recession shock” begins for markets following the worst first-half for the S&P 500 in more than 50 years, Bank of America Corp.’s Chief Investment Strategist Michael Hartnett says.

While expectations of aggressive rate hikes by the Federal Reserve are peaking, inflation expectations are not, and Bofa’s bull and bear indicator remains at “maximum bearish” for a third week in a row, Hartnett wrote in a note.