BlockBeats News, March 19th. Michael Hartnett, Chief Equity Strategist at Bank of America, believes that despite the surge in oil prices which may exacerbate inflation and drag on the economy, consumer stocks may instead be experiencing the best buying opportunity at the moment. “Consumer stocks have fully digested stagflation expectations,” Hartnett said during an event on Thursday. He warned that the increase in oil prices may delay Fed rate cuts, putting short-term pressure on the stock market. The S&P 500 falling to around 6600 points would be an ideal entry point. Hartnett refers to today’s investors as the “quantitative easing generation” — accustomed to central banks readily bailing out the market.
He believes that this expectation needs to be disrupted for policymakers to take real action. In the long term, he is bullish on the international market and commodities, calling them the “true bull market of the inflation era,” and dismissing speculations that the Fed might raise rates amid turmoil as “nonsensical.” (FXStreet)
