After Blackrock, now it’s the turn of Bank of America: everyone seems to believe that we will see a “stock melt-down” during next Summer in the US, let’s see what are the main points of their analysis
(original publishing date 05-26-14)
Summer will begin in less than a month, and yet people are already sweating.
No, we’re not talking about hot temperatures, it seems like there’s something hotter than that ahead of us: a stock melt-down.
We have already told you about Blackrock’s fear on stocks, now Bank of America Merrill Lynch Chief Investment Strategy Michael Hartnett is sure that we will see an aggressive sell-off in Summer.
Why ? Here’s his explanation:
“With 56% of the world economy under zero rate policies, $1.8 trillion in central bank liquidity in 2014, and the equity float set to decrease by $565 billion this year, the summer risk remains for a melt-up in stock, credit, and bond prices rather than a melt-down”