BofA issues key warning on the dollar
Bank of America Chief Strategist Michael Hartnett said investors may continue to stay away from risk assets until there are clear signs that the dollar has peaked.
According to Hartnett, US Treasury yields remaining near their highest levels in more than two decades are also contributing to market concerns.
As investors reduce risky positions and move into cash, the Bloomberg Dollar Index has risen around 3% from its September low. Hartnett said leverage and risk are being reduced across markets, warning that sharp sell-offs in small- and mid-cap stocks similar to those seen in the banking sector could further increase downside risks.
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