BofA’s Hartnett Sees S&P Retesting 4,200 as China Woes Grow
- Cash inflows year-to-date exceed 2020 record: BofA citing EPFR
- Says spike in Cboe put-call ratio is a ‘bad sign’ for stocks
Global markets have been roiled this week on growing concerns about the health of China’s property market and its impact on the broader economy.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
US stocks could drop another 4% as the economic turmoil in China spooks global investors and bond yields surge, according to Bank of America Corp.’s Michael Hartnett.
The strategist — who has held on to his bearish outlook this year even as equities rallied — said a further spike in Treasury yields and a weakening Chinese yuan could push the S&P 500 to 4,200 points — nearly 4% lower than current levels.