BofA’s Hartnett Says Markets Outlook Flips to Greed From Caution
- Strategist says US bond yield seen closer to 4.5% than 5.5%
- Cash remains most popular asset, set for record annual inflows
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The caution that pervaded stock markets in the past three months has now switched to “year-end greed” on expectations of a decline in US bond yields, according to Bank of America Corp.’s Michael Hartnett.
The “fear” among investors last month about a surge in Treasury supply as well as the worries around fiscal deficit had caused yields to “overshoot,” Hartnett wrote in a note. That has now flipped as the 10-year yield is seen closer to 4.5% rather than 5.5%, the strategist said.