Bank of America: The current market situation is similar to the period before the 2008 financial crisis

Bank of America strategist Michael Hartnett stated on Friday that the sharp rise in oil prices and increasing concerns in the private credit market are bringing the current market trends closer to the situation before the 2007 to 2008 financial crisis.

He pointed out that during 2007 to 2008, oil prices rose from $70 per barrel to $140, coinciding with the onset of the crisis impacting the financial system. Since the outbreak of the conflict in Iran in February, oil prices have risen over 60% this year.

Hartnett noted that the market performance shows "disturbingly similar" trends to those of 2007 to 2008. Currently, there are also concerns about banks' exposure to private credit, coupled with soaring energy prices raising worries about stagflation. He advised investors to reduce exposure to related assets when oil prices exceed $100, the 30-year U.S. Treasury yield exceeds 5%, and the U.S. dollar index exceeds 100