Bank of America strategist Hartnett recommends selling U.S. stocks and the dollar on rises.

Bank of America strategists say investors should sell U.S. stocks and dollars on the rise, warning that the conditions for sustained increases are fading. The team led by Michael Hartnett states that the dollar is in a long-term depreciation phase, and the trend of funds flowing out of U.S. assets will continue until The Federal Reserve starts cutting interest rates, the U.S. reaches a trade agreement with China, and consumer spending remains strong. U.S. assets faced setbacks this year after reaching extreme valuations in 2024, as investors reduced risk exposure following the introduction of aggressive trade policies. Tariffs are threatening global economic growth and could exacerbate U.S. inflation, prompting investors to diversify risks in their asset allocation. The S&P 500 index fell as much as 19% from its February peak but recovered nearly half of the decline as buyers stepped in. The Bloomberg Dollar Index has fallen 6.3% this year.