Buy Bonds and Gold as Bubble Risk Returns, BofA Strategist Hartnett Says
- Sees debt, bullion as hedges against recession, inflation risk
- Also likes non-US stocks, commodities in event of soft landing
This article is for subscribers only.
The euphoria in equity markets following the Federal Reserve’s interest-rate cut is stoking the risk of a bubble, making bonds and gold an attractive hedge against any recession or renewed inflation, according to Bank of America Corp.’s Michael Hartnett.
The strategist — who was largely bearish on stocks last year and has previously expressed his preference for bonds in 2024 — said that stocks are now pricing in more Fed easing and about 18% earnings growth for the S&P 500 by end-2025.