BOFA’S HARTNETT SEES RISK-OFF MOOD PERSISTING

BofA’s Michael Hartnett says investors are likely to avoid riskier trades until the dollar peaks and bond yields retreat from multidecade highs.

The Bloomberg dollar index has risen 3% from its September low as investors rebuild cash and reduce leverage.

Hartnett recommends starting to add bonds, while warning that deeper declines in small caps and banks could signal weakening growth optimism and eventually pressure technology stocks.
(@WalterBloomberg)