Finance
BofA Sees Traders Flocking to Risky Stocks as Fed Interest-Rate Cut Bets Build
- EM equities, small caps, REITS, and FTSE 100 stand to benefit
- Russell 2000 Index on track for best week since November
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The latest economic data that reinforced speculation the Federal Reserve will be able to cut rates as early as September is poised to spur appetite for more speculative corners of the stock market, according to strategists at Bank of America Corp.
Equities with a generally higher debt burden, like small caps and REITs, as well as emerging-market stocks and the UK’s FTSE 100 Index may stand to benefit as policymakers get closer to easing after the most aggressive tightening cycle in a generation, a team led by Michael Hartnett said Friday in a note to clients.