With the Federal Reserve (Fed) stepping up its hawkish rhetoric, Bank of America released a research report on Friday (22nd) that pointed out that the large-scale withdrawal of US stock funds is just beginning.
After a strong rebound last year, U.S. stocks have been under pressure this year, with technology stocks dominated.Nasdaq The 100 index has fallen as much as 16% this year.Dow JonesFriday (22nd) plunged 981.36 points, ushering in the biggest one-day drop since October 28th, 2020, mainly because US Federal Reserve Chairman Powell signaled support for further sharp interest rate hikes to curb inflation.
Bank of America investment strategist Michael Hartnett pointed out that investors pulled $19.6 billion from U.S. large-cap stocks in the week ended April 20, the largest weekly outflow since February 2018.
The Bank of America judges that the bear market is ready to show signs. Hartnett pointed out that everyone on Wall Street is bearish, and the wave of large-scale redemptions has just begun. is the next target.
BofA is pessimistic about 2022, although BofA’s bull and bear indicators send a buy signal for the stock market, Hartnett sees the S&P index at 4,800 points this year, up 9.2% from current levels, but the Fed’s tightening policy may make the standard The risk of the general public hitting the 4,200-point floor is down 4.4% from current levels.
The real yield of 10-year U.S. government bonds has recently turned positive, adding to the revaluation pressure of high-risk assets such as the stock market.
Morgan Stanley strategists are also concerned about the stock market risks brought about by raising interest rates. Morgan Stanley analyst Graham Secker mentioned that the rapid jump in U.S. real yields in recent weeks has limited impact on global stock markets, but this may soon be affected. will change.