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. ...