A broad decline in stocks, oil prices, bond yields and the U.S. dollar could pave the way for a renewed appetite for risk, according to Bank of America strategist Michael Hartnett.
Market Drops May Increase Risk Appetite
Hartnett suggested that investors should consider aggressively adding positions in riskier assets if the S&P 500 falls to the 4,800-5,000 range and former President Donald Trump’s approval rating drops to 40-45%.
Market Volatility Creates Buying Opportunities
Global markets have experienced increased volatility in recent weeks due to trade tensions, inflation concerns and shifting monetary policies.
But Hartnett believes a pullback in key financial indicators could present a buying opportunity for risk assets, including stocks and commodities.
The strategist also pointed to Trump’s approval rating as a key market signal. As political uncertainty looms ahead of the 2024 presidential election, investors are closely watching policy developments that could impact economic conditions.
Hartnett's call suggests that while markets remain fragile, a well-timed entry into risk assets could yield significant gains as sentiment shifts.
*This is not investment advice.
