economy
Stock market continues run to records. Bank of America says only two things can stop it
Nothing can stop this bull market. Well, almost.
TL;DR
- The S&P 500 achieved a new record high, surpassing 7,800 intraday and closing at an all-time high.
- Energy, healthcare, and financial sectors have led the market's momentum this week.
- Bank of America's Michael Hartnett identifies surging national debt and higher bond yields as potential derailers of the bull market.
- The U.S. budget deficit reached its highest monthly level in over five years in July.
- U.S. national debt is projected to surpass $40 trillion soon and reach $50 trillion by 2029.
- Treasury yields, particularly the 30-year bond yield, are near multi-decade highs, influenced partly by concerns over elevated energy prices due to Middle East conflicts.
- Hartnett's 'asset allocation rules of the road' for the 2020s include avoiding bonds, China, and the U.S. Dollar, while being 'all-in on AI'.