Author Topic: Get ready for a 10% stock drop, driven by the 3 ‘Rs,’ warns Bank of America  (Read 245 times)

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Offline libertybele

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Get ready for a 10% stock drop, driven by the 3 ‘Rs,’ warns Bank of America

Bank of America was ringing alarm bells over equities on Friday, as it warned a correction is looming.

“3R’s of rates, regulation, redistribution are the historic catalysts that end bull markets & bubbles…we say all ’21 events, not ’22, and all spell lower/volatile coming quarters/years,” said Michael Hartnett, chief investment strategist at the bank, in the Flow Show note to clients.

He said investors may be facing higher inflation in the second quarter, and while it is possible the Federal Reserve may turn more dovish at its March, April and June meetings, there are headwinds. That shift would coincide with 5% gross domestic product growth, more than 20% profit growth, around 3% inflation, and “visible signs of Wall Street excess speculation,” he said.

On the regulation side, Hartnett said investors should take note of China’s central bank tightening up liquidity this week. China is “clearly playing the role of ‘adult-in-room’ willing to tamp down speculative activity in role reversal from 10 year ago.”

But once China tightening starts to coincide with falling bank stocks in the country, fears over liquidity tightening will spread, he said. ..............

https://www.marketwatch.com/story/get-ready-for-a-10-stock-drop-driven-by-the-3-rs-warns-bank-of-america-11611926024?mod=home-page
Romans 12:16-21

Live in harmony with one another; do not be haughty, but associate with the lowly, do not claim to be wiser than you are.  Do not repay anyone evil for evil, but take thought for what is noble in the sight of all.  If it is possible, so far as it depends on you, live peaceably with all…do not be overcome by evil, but overcome evil with good.