BofA Says Hard Landing to Hit Stocks in Second Half
- Strategist joins chorus of ‘no landing’ scenario in first half
- BofA sees S&P 500 sliding more than 7% in under three weeks
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The delayed arrival of a US recession will weigh on stocks in the second half of the year, according to Bank of America Corp. strategists, who say a resilient economy thus far means interest rates will stay higher for longer.
A team led by Michael Hartnett is among those predicting a scenario known as “no landing” in the first half of the year, where economic growth will stay robust and central banks will likely remain hawkish for longer. That will probably be followed by a “hard landing” in the latter part of 2023, they wrote in a note dated Feb. 16.