The global market selloff that saw the S&P 500 Index post its worst first four months of a year since 1939 has further to run, according to Bank of America Corp.
“Base case remains equity lows, yield highs yet to be reached,” BofA strategists led by Michael Hartnett wrote in a note.
Every asset class saw outflows in the week prior to the Federal Reserve’s meeting, with real estate posting its biggest outflow on record — $2.2 billion — and investors piling into safe havens like U.S. Treasuries, BofA said, citing EPFR Global data through Wednesday.
The Nasdaq 100 Index tumbled 5.1% on Thursday, the most since September 2020, slumping along with most bond markets and unwinding the prior day’s post-Federal Reserve bounce. The wild two days for markets leaves the tech-heavy gauge down 21% for the year amid concerns about inflation, aggressive rate hikes and an economic slowdown.
European stocks and U.S. futures fell on Friday morning in London, signaling the selloff may continue.
“Paralysis rather than panic best describes investor positioning,” Hartnett wrote, saying the market is grappling with how to price in inflation and slowing growth.
“‘Recession shock’ was priced-in too quickly; this is a problem as stronger-than-expected economic data in the first half is causing the market to price-in longer/bigger inflation/rates shock,” he wrote.
Still, Hartnett noted that the average entry point for $1.1 trillion in inflows to the S&P 500 since January 2021 was 4,274 index points, meaning that investors are “under water but only somewhat” for now, with the gauge at around 4,147 points.
Elsewhere, a Commonwealth team in Massachusetts converts to Cetera, while Janney draws four former Wells Fargo advisors to its Radnor, Pennsylvania office.
Clients say he copied the boss on his emails - and now they can't touch their cash.
He wired millions to his own accounts and told investors the fund was winning.
The partnership arrives as most small business owners near retirement age still don't have a formal succession plan in place.
A spokesperson for the estate planning fintech cited AI's reshaping of the industry as Trust & Will restructures its business.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
