BofA Strategist: Federal Reserve Rate Hike Speculation Is "Nonsense," Consumer Stocks May Face Best Buying Opportunity

Deep Tide TechFlow News, March 19 — According to Jin10 Data, Michael Hartnett, Chief Equity Strategist at Bank of America, believes that although soaring oil prices may exacerbate inflation and weigh on the economy, consumer stocks might currently present the best buying opportunity. “Consumer stocks have fully priced in stagflation expectations,” Hartnett said at an event on Thursday. He warned that rising oil prices could delay the Federal Reserve’s rate cuts, short-term depressing the stock market. The S&P 500 index falling to around 6,600 points may be an ideal entry point. Hartnett referred to current investors as the “QE generation”—accustomed to central banks rescuing the markets. He believes this expectation needs to be broken for policymakers to take real action. In the long term, he is optimistic about international markets and commodities, calling them the “true long bull of the inflation era,” and dismisses speculation that the Fed might raise interest rates amid turbulence as “nonsense.”