BofA’s Hartnett Sees Risk of Stock Bubble on Fed Pivot, Tax Cuts

The risk of a speculative stock-market bubble is increasing as expectations of US interest-rate cuts draw massive investment flows into equities, according to Bank of America Corp.’s Michael Hartnett.

With the US moving closer to trade deals with China and other partners, tariff wars and geopolitics are becoming less of a concern for investors. Instead, they are pricing a greater chance of Federal Reserve rate cuts and waiting to see if President Donald Trump’s tax bill is passed in Congress next month.