BofA Says Policy Moves to Keep Stocks Away From Bear Market
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The slump in US stocks is likely to prompt policy intervention from President Donald Trump as well as the Federal Reserve, Bank of America Corp.’s Michael Hartnett said.
The strategist recommended buying the S&P 500 Index at 5,300 points, a drop of another 4% from Thursday’s close. He said that level would indicate the selloff is over if it’s accompanied by more stock outflows, a surge in fund managers’ cash levels to above 4% of assets under management, and a widening in US high-yield corporate spreads to 400 basis points.