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.

Read full article

Stock Forecasts

TLTView TLT chart on TradingView

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.

GLDView GLD chart on TradingView

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.

Related News

Idea that Fed has managed this soft landing 'is starting to take hold': Kenny Polcari | Fox Business Video

Slatestone Wealth Chief Market Strategist Kenny Polcari discusses the market rallying following the inflation report, Jamie Dimon's warning of geopolitical risks, and how he fared during Hurricane Milton.

SPY
TLT

Treasury yields slightly higher as investors await inflation data

Oct 10, 2024, 1:46 AM

U.S. Treasury yields were mixed Thursday as investors continued to digest meeting minutes from the Federal Reserve and awaited fresh inflation data.

TLT

Fed officials were divided on whether to cut rates by half a point in September, minutes show

Oct 9, 2024, 2:00 PM

The Federal Reserve on Wednesday releases minutes from its Sept. 17-18 policy meeting.

TLT
SHY