Bank of America Chief Investment Strategist Warns US Stimulus Policy Creates Financial Asset Bubble
22nd January 2021 | Hong Kong
Bank of America Chief Investment Strategist Michael Hartnett is warning of a financial asset bubble, created by the United States stimulus policy. In 2020, many central banks had supported the economy and and asset prices through monetary and fiscal stimulus to save jobs & companies, and to cushion the impact of the COVID-19 pandemic. The new United States President Joe Biden, is expected to provide a $2,000 stimulus payout to eligible United States citizens and an additional $1 trillion in fiscal stimulus for the economy.
” Bank of America Chief Investment Strategist Warns US Stimulus Policy Creates Financial Asset Bubble “
Bank of America Chief Investment Strategist, Michael Hartnett:
“D.C.’s policy bubble is fuelling Wall St’s asset price bubble … … when those want to stay rich start acting like those who want to get rich, it suggest a late-stage speculative blow-off”
Global Major Stock Indexes, Positive Performances
Despite the COVID-19 Pandemic, many global major stock indexes have positive returns, with NASDAQ, KOSPI (Korea) and TWSE (Taiwan) indexes gaining more than 40% each compared to a year ago (24/1/20 to 22/1/21).
Global Indexes – 1 Year Performance
Global Index | Country | 24/1/20 | 22/1/21 | 1 Year |
Dow Jones | United States | 28989 | 30996 | 6.9% |
S&P 500 | United States | 3295 | 3841 | 16.6% |
NASDAQ | United States | 9314 | 13543 | 45.4% |
FTSE 100 | UK | 7585 | 6695 | -11.7% |
Euronext 100 | Europe | 1160 | 1123 | -3.2% |
Nikkei 225 | Japan | 23343 | 28631 | 22.7% |
SSE | China (Shanghai) | 2746 | 3606 | 31.3% |
SZSE | China (Shenzhen) | 2449 | 2456 | 0.3% |
Hang Seng | Hong Kong | 27160 | 29447 | 8.4% |
STI | Singapore | 3253 | 2991 | -8.1% |
All Ordinaries | Australia | 7098 | 7078 | -0.3% |
Sensex | India | 41155 | 48878 | 18.8% |
Asia-Pacific Indices – 1 Year Performance
APAC Index | Country | 24/1/20 | 22/1/21 | 1 Year |
Nikkei 225 | Japan | 23343 | 28631 | 22.7% |
SSE | China (Shanghai) | 2746 | 3606 | 31.3% |
SZSE | China (Shenzhen) | 2449 | 2456 | 0.3% |
Hang Seng | Hong Kong | 27160 | 29447 | 8.4% |
STI | Singapore | 3253 | 2991 | -8.1% |
All Ordinaries | Australia | 7098 | 7078 | -0.3% |
Sensex | India | 41155 | 48878 | 18.8% |
KOSPI | Korea | 2176 | 3140 | 44.3% |
TWSE | Taiwan | 11421 | 16019 | 40.3% |
JKSE | Indonesia | 6249 | 6307 | 0.9% |
KLSE | Malaysia | 1574 | 1596 | 1.4% |
SET | Thailand | 1511 | 1497 | -0.9% |
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.
The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,700 lending centers, 2,600 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,400 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 31 million mobile users.
Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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