Bank of America Hartnett: Investors "Buy the expectation, sell the fact" The current rebound in US stocks may have ended

In a wave of trade easing that has excited Wall Street, Bank of America’s chief strategist has poured cold water on the situation, warning investors that this rebound may have reached its end. On Friday, Michael Hartnett, Bank of America’s chief investment strategist, warned that due to optimism over tariff reductions in the second quarter, U.S. stocks have seen a “reasonable” rise. However, as the situation progresses into the "buy the expectation, sell the fact" phase, U.S. stocks may not be able to continue rising. Since April 9, when Trump announced a pause on certain tariffs, the S&P 500 index has surged 14%, indicating a strong market reaction to the trade easing. However, it is noteworthy that the index is still down 3.7% year-to-date, significantly lagging behind its international peers. The U.S. has recently taken a more moderate stance on global trade, but these positive factors may have already been fully priced in by the market. Hartnett's views are strongly supported by fund flow data; according to data from EPFR Global cited by Bank of America, approximately $24.8 billion has been withdrawn from the U.S. stock market over the past four weeks, marking the highest redemption level in two years. In light of this outlook, Hartnett provides clear advice for investors: choose bonds over stocks in 2025. In terms of stock allocation, he prefers international stocks over U.S. stocks. In a report on May 8, this strategist pointed out that U.S. stocks are in the late stages of a structural bear market compared to non-U.S. markets. This view offers clear guidance for investors seeking to protect their assets, suggesting that funds should shift towards markets with more defensive characteristics and potential upside