America Merrill: Investment Bet and Market Reaction

america merrill: Analysts at Bank of America Merrill Lynch, led by Chief Investment Strategist Michael Hartnett, said consensus is now rushing back to low growth, low rates' playbook of long credit, emerging markets growth stocks, according to Market Watch. Thus far, that has helped to provide further buoyancy to a stock market that was already on the uptrend following a dreadful few months at the end of 2018. Bank of America research analysts on Friday described wagers for interest-rate hikes in 2019 as the most contrarian investment bet in the world, in a popular flow show research report titled Long risk, long leverage, short vol. It is that violent market reaction that resulted in the worst annual returns for the Dow Jones Industrial Average DJIA, 0.26% the S&P 500 index SPX, 0.09% and the Nasdaq Composite Index COMP, -0.25% since 2008. What wasn't expected was the dovish posture. On Wednesday, the plain-spoken Powell made a deliberate case for no further interest-rate hikes, holding federal-funds futures rates in a range between 2.25% and 2.50%, as expected. (news.financializer.com). As reported in the news.

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