Bank of America’s Hartnett Optimistic as Tariff Fears Ease

Bank of America’s Michael Hartnett, who correctly predicted a 2025 US stock market slowdown, sees improving sentiment as tariff fears subside. His bullish vs. bearish indicator leans positive, reflecting market recovery after April’s bearish global fund manager survey. Hartnett’s BIG strategy—Bonds, International, Gold—outperformed, with international stocks up 13%, gold hitting records, and US Treasuries gaining 2%, while the S&P 500 fell 4%. He remains cautious, noting excessive US asset investments. Hartnett’s weekly flow show and monthly survey, widely followed by investors, signal contrarian opportunities. He anticipates next week’s survey for further insights. Despite a UK-US trade deal and potential China talks, Hartnett warns of overvaluation risks in US markets, particularly tech, as global investors diversify. His optimism is tempered by potential economic slowdowns, but he sees opportunities in non-US markets and safe-haven assets as trade uncertainties linger.