BofA Warns Investors Risk Sleepwalking Into Selloff
- Recession at the back of 2023 is a risk to equities: BofA
- Global stock funds see $44.7 billion of inflows in 4 weeks
This article is for subscribers only.
The US stock rally has already gone too far, and investors face brutal declines if economic growth crumbles in the second half of the year, Bank of America Corp. strategists say.
The “most painful trade” is always the “apocalypse postponed,” a team led by Michael Hartnett wrote in a note. The risk is that inflation flares up again over the next few months, and that the US economy faces a deeper recession in the second half of 2023 after staying resilient in the first six months of the year, they said.