By Steve Goldstein
Strategists led by Michael Hartnett says tariffs may end up being deflationary
Bank of America strategists are recommending investors buy bonds, gold and out-of-favor stocks on expectations of an interest rate cut from the Federal Reserve, former President Donald Trump winning the election, and a soft landing for the U.S. economy.
Strategists led by Michael Hartnett advise investors be bullish toward “bonds, bullion and breadth”, the latter of which includes distressed value sectors like real estate investment trust and distressed growth sectors like biotech.
The bond market knows the Fed is cutting rates, U.S. voters are angry about inflation, and that the labor market is weakening, says Hartnett and team.
Related: How to invest in bonds like a pro
Proposed import tariffs might also be deflationary rather than inflationary, and bonds might hedge unanticipated…
