As stocks pull back from all-time highs, a top Bank of America strategist warned investors to be cautious, citing a series of economic indicators that have historically signaled the end of a rally.
"Historically, whenever the unemployment rate has started to rise, it has never gone down again.
The unemployment rate unexpectedly climbed to 4.1% in June , tied for the highest level since October 2021.
The strategist added that such conditions typically lead to higher risk premiums and lower asset prices, especially given the current elevated market levels.
The Bank of America strategist also expressed concern about consumer confidence, which he described as "collapsing."
Persons:
Sebastian Raedler, Raedler, Hani Redha, Redha, Peter Lynch
Organizations:
Bank of America, . Treasury, University of Michigan, Pine, Investments
Locations:
U.S