Buy Bonds and Gold as Bubble Risk Returns, BofA Strategist Hartnett Says
Published On Sep 20, 2024, 4:58 AM
According to Bank of America's Michael Hartnett, the recent bullish trends in stock markets fueled by the Fed's interest-rate cuts may point to a bubble risk. He advises investors to consider reallocating their portfolios towards bonds and gold as protective measures against potential economic downturns or renewed inflation. Hartnett predicts that while stocks are expecting significant earnings growth, the current market environment warrants caution. He suggests that international equities and commodities could also provide effective strategies during this economically cautious phase.
Stock Forecasts
TLT
Positive
Bonds offer a stable and relatively safer investment during volatile periods. Buying bonds is recommended as they typically appreciate in value or maintain stability during market corrections.
GLD
Positive
Gold is traditionally viewed as a safe-haven asset during times of economic uncertainty and inflation. Increased purchasing may drive its price up as investors seek security.
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