Bank of America chief investment strategist Michael Hartnett has joined his colleagues in admitting he was too pessimistic in his outlook for stocks this year.
In his weekly note to clients examining the flow of money through the market, Hartnett took a jab at himself, labeling his outlook the product of "A Bear of Very Little Brain."
Further, he outlined several reasons why "bears like us have been wrong" in the first half of 2023.
On the economy, "nominal GDP remained super-charged by fiscal stimulus/war, labor" while the labor market was "impervious to monetary policy in post-pandemic world," Hartnett wrote.
These include deflation, emerging market stocks and "hard-landing plays" such as REITs and commercial real estate, banks, small-cap stocks, oil and China.
Persons:
Michael Hartnett, Hartnett, BofA, Savita Subramanian
Organizations:
of America, Silicon Valley Bank, Fed & US, Federal Reserve, Treasury, Labor
Locations:
Silicon, China