BOFA'S HARTNETT WARNS OF MARKET RISK-OFF PERIOD AHEADBank of America's Michael Hartnett expects investors to reduce risk | Hanami
BOFA'S HARTNETT WARNS OF MARKET RISK-OFF PERIOD AHEAD
Bank of America's Michael Hartnett expects investors to reduce risk over the next 3–4 weeks, citing 3% real yields, persistent inflation, AI valuation concerns and U.S. midterm election uncertainty.
Hartnett expects an October Fed rate hike, despite markets increasingly pricing in a pause.
His preferred sectors include small caps, REITs and consumer discretionary, while avoiding additional technology exposure.
The key takeaway: Higher yields and political uncertainty could pressure risk assets in the near term.