BofA Strategist Hartnett Warns S&P 500 Rally Draws Investor Skepticism
There's growing skepticism among investors about the scope for more S&P 500 gains at a time when European and Chinese stocks are outperforming, according to Bank of America Corp. strategist Michael Hartnett. Most investors expect the S&P 500 to continue its slow march higher, but doubts grow as valuations reach lofty levels and spending on artificial intelligence becomes increasingly dominant. As global markets rally, US stocks trail behind, leaving investors questioning the sustainability of the current bull market.
- This warning from a prominent strategist highlights the need for investors to reassess their expectations about the S&P 500's trajectory and consider alternative asset classes that may offer better returns.
- What role will fiscal intervention play in shaping investor sentiment if the S&P 500 were to decline, potentially breaking key support levels and triggering a market downturn?