A $46 trillion wipeout in stocks and bonds won’t stop until central banks around the world launch a coordinated pivot, Bank of America says

  • A $46 trillion wipe out in stocks and bonds over the past year has led to forced liquidations on Wall Street, according to Bank of America.
  • The bank doesn’t expect the bleeding to stop until the Fed launches a coordinated dovish pivot with other central banks. 
  • “Markets stop panicking when central banks start panicking but BoJ/BoE panics not yet credible nor coordinated,” BofA said.

It’s been a tough year for investors, with global stock and bond markets erasing $46.1 trillion in market value since November 2021, according to Bank of America.

The massive drawdown has led to forced liquidations on Wall Street, the bank’s chief investment strategist Michael Hartnett said in a Friday note, highlighting the recent break below 2018 support in the NYSE Composite Index.

We are primarily funded by readers. Please subscribe and donate to support us!

And investors shouldn’t expect the pain to stop until the Federal Reserve, in coordination with other central banks, pivots away from its currently hawkish monetary policy and towards a more dovish stance, according to the note.

markets.businessinsider.com/news/stocks/stock-market-outlook-46-trillion-wipeout-fed-pivot-inflation-rates-2022-9

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.