Bank of America warns strong economic data could hit stocks by causing the Fed to dial back help

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A so-called taper tantrum could be looming as central banks scale back fiscal stimulus, Bank of America has warned.

Tapering is when governments scale back monetary stimulus or quantitative easing (QE), usually causing inventory costs to fall. The phrase taper tantrum was coined in 2013 when the Federal Reserve mentioned it could regularly scale back — or taper — the monetary stimulus put in place after the 2008 monetary disaster, causing hovering Treasury yields and inventory market jitters.

In a be aware Friday, the BofA strategists mentioned this tapering had already begun and was “dangerous information” for stocks, specifically “FAAMGs”: Facebook, Amazon, Apple, Microsoft, and Alphabet‘s Google.

But additionally they highlighted some “excellent news” on the horizon.



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