Bank of America Strategist Warns Investors to Exit U.S. Stocks and Dollar
Michael Hartnett of Bank of America has delivered a stark warning to investors: exit now or risk losses later. He believes both the U.S. dollar and domestic equities are skating on thin ice.
Hartnett pointed to a narrow tech-driven rally, which he dubbed a “Magnificent 7 squeeze.” He argued it’s giving investors false hope. Without clear progress on rate cuts, consumer strength, or a trade breakthrough with China, the rally has no legs.
He pegged 5,690 as a critical line for the S&P 500. Unless those three issues are resolved, Hartnett sees no reason to stay in U.S. assets. “Sell into every rally,” he advised.
Global Shift Away From U.S. Markets
Capital is moving overseas. Hartnett said money is flowing into emerging markets, foreign stocks, and commodities instead. Tariff policy from the White House and sticky inflation are pushing investors to look elsewhere.
He doesn’t expect that to change unless the Fed aggressively cuts interest rates—something he doubts will happen soon.
Weak Dollar, Strong Gold
Hartnett sees the falling dollar as the market’s clearest signal. The Bloomberg Dollar Index has already dropped 6.3% this year. He called the dollar’s decline “inevitable” without intervention.
Gold, on the other hand, is thriving. Hartnett said its rise shows how fragile the dollar really is.
“Lower yields could soften the fall,” he explained, “but if yields rise, the dollar drops fast.”
He believes gold is sending a message investors shouldn’t ignore.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
