MICHAEL HARTNETT
All roads lead to Nvidia as tech sees record inflows, Says BofA
Nvidia Corp became the world's most valuable company, driving record inflows into tech funds. Bank of America Corp strategists noted $8.7 billion inflow in tech funds via EPFR Global data, with strategist Michael Hartnett commenting on the impact of Nvidia's success.
BofA’s Hartnett says US tech in a bubble that’s waiting to pop
The appetite for tech stocks has been relentless this year, with an index of Magnificent Seven notching additional almost 12% so far in 2024. And the latest fund flow data shows global investors are adding to their bets.
The S&P 500 through the prism of a 'Magnificent 7'
Forget the long list of companies that pushed the S&P 500 to a new high this month. All investors needed to mint bumper returns were the "Magnificent Seven."
Wall Street Week Ahead: Tax-loss selling, 'Santa rally' could sway US stocks after November melt-up
Investors next week will be watching U.S. employment data, due out on Dec. 8, to see whether economic growth is continuing to level off
Goldman Sachs latest Wall Street bank to see stock gains next year
The team, led by David Kostin, joins others who have turned more positive about the outlook for equities, like Morgan Stanley's Michael Wilson. Meanwhile, Bank of America Corp.'s Michael Hartnett has said investors have moved to overweight positions in stocks and bonds.
S&P 500 above 4,400 leaves no room for more gains: Citigroup
Citigroup strategists predict that the US bull-market rally in stocks is set to end. The bank has maintained its prediction of S&P 500 Index tumbling to 4,000 by year-end, with a new target of 4,400 by mid-2024. Citigroup has highlighted a looming US recession and apparent wariness among investors surrounding the S&P 500’s breakout.
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Global fund managers afraid to miss out on AI frenzy, shows survey
Bank of America Corp.’s latest global survey of fund managers showed that investors are heavily investing in tech stocks amid the buzz around artificial intelligence. The study reported that fund managers remain broadly underweight on stocks as sentiment remains “stubbornly low.'' The participants also believe that AI will drive corporate profits higher in the next two years. However, caution prevailed in the survey, which showed that 59% of participants don’t think the Fed is done tightening policy.
Equity bulls count on Fed-cycle math that worked For decades
Money managers are reluctant to invest in US stocks, with $2.7bn pulled from equity funds in the week to 26 April, following a rate hike by the Federal Reserve. Strategists and analysts have cited fears of a global recession and that higher interest rates will fuel turmoil in the banking sector. Others have taken note of the benign unemployment picture, noting that monetary policy has never eased borrowing costs when the jobless rate has been so low.
Investors most underweight stocks versus bonds since 2009, BofA says
In the most bearish survey of this year — the first after banking turmoil roiled markets last month — investors indicated that fears of a credit crunch had driven up bond allocation to a net 10% overweight — the highest since March 2009. A net 63% of participants now expect a weaker economy, the most pessimistic reading since December 2022.
Hard landing to hit stocks in second half, says BofA
Recent economic indicators show that the Fed’s mission to bring down inflation is “very much unaccomplished,” Hartnett wrote
Investors most underweight on US stocks since 2005, BofA poll shows
Participants in the January poll were “a lot less bearish” than in the fourth quarter, sparking a rotation to emerging markets, Europe and cyclical stocks, and away from pharmaceuticals, technology and the US, strategists led by Michael Hartnett wrote in a note. Allocation to US equities “collapsed” during the first month of 2023, with investors a net 39% underweight the asset class, they said, exceeding even the UK’s 15%.
Rush to cash is at fastest pace since pandemic: BofA
The asset class had inflows of $62.1 billion in the week through November 2, according to a note from the bank citing EPFR Global data. That's contributed to $194 billion of inflows into cash since the start of October - the fastest start to a quarter the pandemic roiled markets in the second quarter of 2020.
Investors fleeing to cash like it's 2020
Credit Suisse Group strategists said this week that earnings faced an "extreme" risk and that stock funds had yet to see "significant" outflows - all implying further declines in the S&P 500.
Raging markets selloff in 5 charts: $36 trillion and counting
With the year heading into its last quarter, there is likely more pain ahead. Central banks are in full fire-fighting mode, making clear they intend to raise interest rates further to douse inflation, even if that leads to economic recession.
Wall St Week Ahead-Investors wonder when vicious sell-off in U.S. stocks will end
If the S&P 500 closes below the mid-June low in the days ahead, that may prompt another wave of aggressive selling, Stovall said. This could send the index as low as 3,200, a level in line with the average historical decline in bear markets that coincide with recessions.
BofA says cash is king as investor pessimism hits 2008-era high
Cash had inflows of $30.3 billion, while global equity funds saw outflows of $7.8 billion in the week through Sept. 21, the bank said in a note, citing EPFR Global data. Bond funds lost $6.9 billion, while $400 million left gold, the data showed.
BofA survey shows investors fleeing equities en masse on fear of recession
A historically high 52% of respondents said they are underweight equities, while 62% are overweight cash, according to the bank’s global fund manager survey, which included 212 participants with $616 billion under management in the week through Sept. 8.
Asian shares slip anew, dollar keeps rising
"We expect a reminder that more tightening is needed and there is still a lot of progress to be done on inflation, but no explicit commitment to a specific rate hike action for September," said Jan Nevruzi, an analyst at NatWest Markets.
Recession fears set to split stocks and bonds after summer rally
A near 12% advance in July and August has put US stocks on course for one of their best summers on record. And companies’ bonds have gained 4.6% in the US and 3.4% globally since bottoming out in mid-June. Having moved in tandem, the two are now set to diverge, with bonds looking better placed to extend the rally as the dash to safety in an economic downturn will offset a rise in risk premiums.
Stocks surge higher as earnings gather steam; Dow jumps 500 points, Nasdaq rally tops 2%
The Dow jumped 514 points, or 1.65%. The S&P 500 ticked up 1.91%, and the Nasdaq Composite rose 2.13%.
Film-maker Christopher Nolan adds James D'Arcy & Michael Angarano to the cast of WWII film 'Oppenheimer'
The film stars Cilian Murphy as J Robert Oppenheimer, one of the fathers of the atomic bomb.
Investors see transitory inflation and peaceful Fed taper: BofA survey
Unprecedented stimulus sparked worries about inflation earlier this year, driving U.S. 10-year borrowing costs to more than 1.8% in March and spooking stock markets.
Bank of America clients with $489 billion finally trust this bull market
Among investors surveyed by Bank of America Corp. in the week through Aug. 13, 46 per cent described equities as being in a bull market, up from 40 per cent in July. The share of skeptics who say it’s a “bear market rally” has dropped to 35 per cent from 47 per cent a month earlier.
India could get re-rated if interest rates move lower: Michael Hartnett, BofAML
"From 2021-22, EMs will be better because US market & tech stocks would be off their peaks."
Buy volatility ahead of a jam-packed 'Policy Month,' says BofAML
Bank of America joins strategists at UBS Securities LLC in warning investors to prepare for a mean reversion in volatility.
Here's the story behind that huge disconnect in the stock market
The big questions surrounding this disconnect relates to where the outflowing cash is being invested and who's propping up stocks.
Europe’s share towards global profits slides
Organization for Economic Cooperation and Development, or OECD, published its latest growth projections for the global economy in June.
Market to hit 27k by year-end, domestic plays to dominate: Michael Hartnett
Our investment thesis is driven by 2 themes. One, mid-caps will outperform large caps and domestic plays will outperform exporters, says Hartnett.
Investors fear global economic recovery could falter: BofA
Investors' optimism over the global economic recovery and corporate profits has been dented though asset allocators have increased their allocations towards global emerging market equities.
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