Bank of America’s Michael Hartnett says stocks are headed for a “big collapse”

Per Go Banking Rates

Bank of America’s chief investment strategist, Michael Hartnett, has given his thoughts regarding the stock market, saying he sees a “big collapse” coming. He did note that the market would still experience a “big rally” before this happens.

This came as US stocks surged 20% from their October 12, 2022 low, on June 8. This signifies that it has officially entered the bull market, with the S&P 500 continuing to rise on June 30, 2023.

Hartnett: “...big rally before big collapse.”

BOA’s chief investment strategist was a bear and has been proven wrong in 2023. This came as the market was still able to pivot despite what had happened with the collapse of Silicon Valley Bank.

However, despite the bull market, Hartnett believes that this won’t last.

Hartnett: ”...from momentum to contrarian plays, from deflation to inflation assets, from DM to EM stocks, from no landing plays to hard landing play.”

In September, it was reported that stock market losses wiped out $9 trillion from Americans’ wealth. This resulted in more pressure on family balance sheets and spending.

In February, investor Jeremy Grantham said that the stock market could crash by 50% this year as the bubble enters its “final phase.” His base-case scenario calls for the S&P 500 falling by 20% to 3,200 by the end of the year.

See flow at unusualwhales.com/flow.

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