The likelihood of a hard landing — a scenario in which the U.S. economy abruptly falls into a recession, causing a rush to safe-haven investments — has progressively lost fashion among Wall Street forecasters and investors alike.
Yet, Bank of America’s chief investment strategist, Michael Hartnett — who thrives on contrarian market views — has positioned himself in the unlikely hard-landing camp.
Hartnett unveiled what he believes to be the best portfolio hedge against such an economic downturn.
The Case For 30-Year Treasury Bonds
Thirty-year Treasury bonds have fallen by 45% since April 2020. This marks the worst four-year period in the last 100 years.
Hartnett described bonds as being in an “early secular bear market,” driven by a combination of higher debt, deficits, reverse-globalization, and inflation, which have rapidly pushed bond yields higher.
Despite this grim performance, Hartnett suggests that once a limit is…
