Bank of America Lists Three Market Thresholds for Summer Risk-Off Scenario; Mag7 ETF at $60, USD/JPY at 110

According to Bank of America Securities Chief Strategist Michael Hartnett on June 28, three conditions could trigger a broad market risk-off this summer: Mag7 ETF falling below $60, USD/JPY dropping below 110, and yield curve inversion. None have been triggered yet, though warning signals are accumulating. U.S. stock funds recorded $8.5 billion in net outflows, marking the first withdrawal since March after a historic $119.2 billion inflow. Hartnett noted capital flows are shifting from tech giants into cyclical assets including semiconductors, small-cap stocks, housing, and REITs, reflecting market expectations for policy focus on affordability. He advocates long-term long positions in long-dated U.S. Treasuries and emerging markets, while viewing gold below $4,000 as attractive.
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