A historic divergence is unfolding across asset classes, with gold surging to its best presidential-term start since Gerald Ford while U.S. stocks post their worst performance since the same era, and Bank of America’s chief strategist Michael Hartnett says investors are increasingly betting on policy shifts to rescue the market from soft macroeconomic headwinds.
In a note shared Friday, Hartnett outlined how the “second 100 days” of Donald Trump’s hypothetical 2025 presidency could bring a pivot toward lower tariffs, lower rates and lower taxes — a bullish trifecta for risk assets.
That shift, he said, could revive appetite for equities, even as recession signals persist in the economic data.
Just a week ago, Hartnett said a sustainable bull market would need three things: lower Treasury yields under 4%, consistent earnings growth above 5%, and a meaningful U.S.-China tariff rollback. His strategy remained: …