Bank of America Warns Market Risk-Off sentiment May Persist Until Mid-November, Three Major Risks Remain Unresolved

Odaily reports: Bank of America strategist Michael Hartnett believes that the current risk-off sentiment in global markets may persist until mid-November. He remains tactically cautious on risk assets until three uncertainties—AI financing risks, French bond market pressure, and the U.S. midterm elections—subside.

In a Friday client note, Hartnett wrote that BofA will "maintain a tactical risk-off stance until mid-November," and expects this phase could simultaneously see a combination of "falling yields, declining equities, and a weakening dollar."

This view represents a shift from early October. At that time, Hartnett believed that a recovery in risk appetite would first require waiting for the dollar and bond yields to peak; entering late October, the weight of AI credit risks and political factors in his assessment has risen noticeably.