Monday, 10 July 2017

US stock market set for "big fall in autumn"

Bank of America Merrill Lynch thinks that the US stock market rally may come to an end in the coming months.

Reuters reported last week:

In their weekly round up of global asset flows, BAML said the prospect of more U.S. rate hikes, combined with the ECB readying to scale back its stimulus, meant markets were at a "massive inflection point" in the decade-long easy money trade...

"Next 6 months, higher interest rates likely much more negative for stocks & credit given new central bank policies," its strategists wrote. "Will likely lead to 'Humpty Dumpty' big fall in market in autumn, in our view."

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