Three ‘Big-Impact’ Surprises That Could Slam Stocks, According To Bank Of America

  • 📰 Forbes
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 53%

United States News News

United States United States Latest News,United States United States Headlines

Here are 3 ‘big impact’ surprises that could slam stocks, according to Bank of America: by skleb1234

“The lack of progress suggests Congress may have exhausted its resolve,” Bank of America says, adding that “only a market correction would wake policymakers from their dogmatic slumber.”

The second risk to markets is a House-selected president, analysts say: Concerns about expanded voting procedures, mail-in ballots or recounts in contested states could delay election results, adding more uncertainty for investors. If that were to happen, “state officials could refuse to certify their electors,” meaning that the Constitution would require the House to select a president—but with one vote for each state delegation, “Republicans would likely hold the majority.”

The third factor that could impact markets, according to Bank of America, is a vaccine surprise: Six candidates are already in large-scale Phase 3 trials, with some starting mass production. But financial assets are not yet priced for a “return to normal” in 2021, the firm says, and “the risk worth considering is that an early vaccine could spark a significant tactical rotation out of deflationary defensives and into cyclical sectors.”“While others are hedging the election, consider preparing for a third-quarter buying opportunity,” Bank of America analysts said in their recent note.Stocks have rebounded strongly from their coronavirus pandemic lows in March—although the U.S.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

As Big Business Feasts on Cheap Credit, Small Firms StarveSmall businesses are operating in a world where the conventional rules of steep recessions apply. Large corporations — including relatively high-risk ones — are not. EricLevitz writes
Source: NYMag - 🏆 111. / 63 Read more »