BAML Fund Survey: Doom And Gloom Abound

A U.S. Federal Reserve rate hike this September is priced into the market, says research from Bank of America Merrill Lynch, but is a rising stock market setting up to become a “risk rally” before the September rate hike?

BAML Stock market stands tall in face of a wall of worry

The stock market appears to be climbing a wall of worry, as “bearish sentiment” is credited for the “gutsy resilience of stocks to Greece, China, Fed (rate hike) and (high yield investments),” BAML’s Chief Investment Strategist Michael Hartnett observed in their most recent hedge fund survey along with strategists Brian Leung and Garrett Roche.

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According to two...