Bank of America: Volatility in global financial markets does not imply a sharp economic downturn

Michael Hartnett, chief investment strategist at Bank of America, said that volatility in global financial markets has not yet reached levels that indicate concern about a sharp economic downturn.

He added that expectations of a rate cut by the Federal Reserve mean that the appetite for stocks is still continuing, and investors should sell stocks at the first rate cut, expecting that stocks that have benefited from artificial intelligence will continue to slow in the second half of 2024.

He added, “We recommend investing in government bonds, real estate investment trusts, small-cap stocks, and some emerging markets such as Brazil.”