besting estimates of 255,000, and the unemployment rate dipped to 3.5% from 3.7%. The jobs report only bolstered the Federal Reserve's view that policymakers need to continue to hike interest rates to soften the economy and tame inflation.
Despite the high inflation and ongoing concerns in the market, there appears to be more room for downside, as Hartnett pointed out some valuation extremes that could be tempered further. For example, he observed that Tesla's market cap is the same as the entire European banking sector, and that US equities as a percentage of the MSCI World Index just hit a new record high of 66%.
Still, despite those bullish signals, Hartnett thinks a hard economic landing is likely in 2023."Only question for investors is hard landing or soft landing in 2023; we say hard landing," BofA said.
KEY: Despite the high inflation and ongoing concerns in the market, there appears to be More Room for Downside, as BofA’s Michael Hartnett pointed out some valuation extremes that could be tempered further. StockMarkets stocks StockMarket