Bank of America strategist Hartnett recommends selling U.S. stocks and the dollar on the rise

Bank of America strategists said investors should sell U.S. stocks and the dollar on the upside, warning that the conditions for continued gains were disappearing. The team led by Michael Hartnett said the dollar was in the midst of a long period of depreciation and that the trend of money flowing out of U.S. assets would continue until the Federal Reserve started cutting interest rates, the U.S. reached a trade deal with China and consumer spending held firm. U.S. assets suffered a setback this year after reaching extreme valuations in 2024 as investors cut risk exposure following aggressive trade policies. Tariffs are threatening global growth and could fuel U.S. inflation, prompting investors to spread risk when allocating assets. The S & P 500, down as much as 19 per cent from its February high, has since recovered nearly half of its losses as bargain-hunting has stepped in. The Bloomberg dollar index is down 6.3 per cent this year.