HALISTER1: ‘Bond Shock’ Remains Key Autumn Risk for Markets: BofA

‘Bond Shock’ Remains Key Autumn Risk for Markets: BofA

(Bloomberg) -- “Bond shock” remains key risk amid signs of a cyclical pick-up in inflation, BofA strategists Michael Hartnett, Brian Leung and Jared Woodard write in Aug. 24 note.
  • Maintain “cynically bullish” position on financial asset prices; recommend buying volatility as risk assets are up 15%-20% since Feb. and Sept. is a big “policy month”
  • Risk of hawkish Fed/stronger macroeconomic combination is rising; recommend adding to USD, value, banks/cyclicals, EAFE index equities and reducing duration
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Brian Leung (Bank of America Corp)
Jared Woodard (Bank of America Corp)
Michael Hartnett (Bank of America Corp)

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