BofA gives 4 reasons why it turned tactically bearish on stocks after a 30% rally - Business Insider

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BofA gives 4 reasons why it turned tactically bearish on stocks after a 30% rally

The bank listed four reasons for its cautious view of equities, and also countered with one bullish reason why stocks can rise from here.MORGAN STANLEY: Buy these 20 stocks built to profit from a mounting inflation comeback that will alter the investing landscapeA second wave of coronavirus outbreaks is a real risk, and the markets are not pricing in that risk,stemming from night clubs, despite flattening the curve.

especially with the congressional budget coming into focus this spring. More stimulus is necessary because "when companies and households are saving, only public spending can end a recession." If Congress stalls in passing additional stimulus, "a big market correction to 2,650 may be necessary to focus [their] mind," the bank said.

 

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And the 5th reason, that they didn’t tell, was that they're funneling their money into cryptocurrencies.

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