BofA's Hartnett says US stock rally is likely over

BofA's Hartnett says US stock rally is likely over
Strategist continues to favor bonds over stocks for 2025.
MAY 09, 2025
By  Bloomberg

by Sagarika Jaisinghani

The stunning US stock rebound is likely over, even as the US takes steps toward trade negotiations, according to Bank of America Corp.’s Michael Hartnett.

The strategist said stocks had “correctly” rallied on optimism around lower tariffs in the second quarter. However, he doesn’t see further gains as investors “buy the expectation, sell the fact,” Hartnett wrote in a note.

The S&P 500 has surged 14% since President Donald Trump announced a reprieve in some levies on April 9, although it remains 3.7% lower for the year, trailing international peers.

Washington has also taken a softer tone on global trade in the past few weeks, and is weighing a dramatic tariff reduction during weekend talks with China. On Thursday, Trump unveiled a trade framework with the UK, calling it a “breakthrough” deal.

Hartnett has recommended bonds over stocks for 2025. Within equities, he prefers international to US assets. He said in the note dated May 8 that American stocks are in a late-stage structural bear market relative to non-US peers.

Fund flows have backed up Hartnett’s views. About $24.8 billion was redeemed from US stocks in the past four weeks, the biggest in two years, according to the note from BofA citing EPFR Global data.

 

Copyright Bloomberg News

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.