Indeed, the BofA Merrill Lynch strategist said Federal Reserve tightening fears and the return of confidence and healthy growth in the U.S. risks setting off a “bond crash” comparable to 1994, reports Ambrose Evans-Pritchard at The Telegraph.
Hartnett said the rotation under way from bonds into equities closely tracks the pattern of 1994, with bank stocks leading the way. The rush of cash into equity funds creates the risk of an unstable “melt-up” in stocks over coming months, according to the report.
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