36 days ago • Posted by Charles-Henry Monchau
BofA favors a stagflation scenario in H2
According to BofA, the trigger for H2 stagflation narrative is "peak US consumer" & higher bond yields. "Goldilocks" to "Stagflation" (red quadrant) means outperformance of defensive growth (e.g. staples, big pharma, monopolistic telcos, utilities, some say FAANG) + quality (e.g Swiss Franc over Aussie dollar, Investment Grade over Junk).