Andrew Harnett from Bank of America says equity breadth on the S&P 500 is the worst since the depths of the global financial crisis in March 2009. Nvidia alone is holding up the universe.
His advice: “Buy bonds in the second half”; sell equities and credit as soon as the Fed starts to cut rates. Yes, the world is choking on the scale of bond issuance, but cyclical flight to safe havens trumps structural worries about solvency in a recession.
America’s economic slowdown has crept up on the world. Labour economists have been warning for months that the US jobs market is breaking down. The trouble always starts with millions of ‘marginally attached’ workers, mostly off the radar screen.
Revised data from the Bureau of Economic Analysis now suggests that the labour specialists were right.
The rise in salaries and wages in the first quarter was less than half earlier estimates. The annual rate of…
