According to BlockBeats, Bank of America strategist Michael Hartnett has outlined potential market strategies in response to fluctuations in stocks, oil prices, bond yields, and the U.S. dollar. Hartnett suggests that while these factors might encourage market risk appetite, a weak employment market or increased fiscal policy uncertainty could negatively impact asset prices.
Hartnett has identified three distinct ranges for the S&P 500 index, recommending different investment strategies based on these levels. If the S&P 500 reaches 5400 and the dollar weakens, he advises investing in emerging markets and real estate investment trusts (REITs). At the 5100-5200 level, he recommends purchasing small-cap stocks, homebuilders, and Asian tech stocks, which are sensitive to policy changes.
Should the S&P 500 fall to the 4800-5000 range and U.S. President Donald Trump's approval rating drops to 40-45%, Hartnett suggests aggressively increasing positions in risk assets.