Bank of America warns bond market indicates potential stock market downturn

From Yahoo Finance: 2024-07-16 20:58:25

Bank of America warns that the bond market is signaling a warning sign for stocks, a first since 1999. The bank highlights widening credit spreads in risky CCC-rated bonds and recommends investors improve bond credit quality and favor value stocks over mega-cap tech. The S&P 500 has surged by 19% this year, but the iShares High Yield Corporate Bond ETF is up only 4%. Bank of America is cautious on investing due to the bond market’s warnings and uncertainty over profit boosts from AI. The bank advises investors to move up in credit quality and favor value stocks over tech giants.



Read more at Yahoo Finance: A reliable stock market indicator is flashing its first warning sign since 1999