BofA’s Hartnett Says Bonds Rally May Drag on Stocks in Early ‘24
- Further pullback in yields to signal hard landing, BofA says
- Sees sentiment no longer a contrarian boost to risk assets
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Stock markets will suffer in the first quarter of 2024 as a rally in bonds would signal sputtering economic growth, according to Bank of America Corp.’s Michael Hartnett.
The strategist — who has remained bearish even as the S&P 500 rallied about 19% this year — said lower yields were one of the main catalysts of equity gains in the current quarter. However, a further drop toward 3% would mean a “hard landing” for the economy.