With stock markets in a bit of a "no man's land" territory after a soggy August which saw the S&P suffer its biggest monthly drop since February (yes, believe it or not, the modest 1.8% drop in August was a hard stop to the 5 consecutive prior months of gains), the latest note from BofA CIO Michael Hartnett is not only somewhat shorter than usual (everyone has to take a break sometimes) but also focuses more on the rates market which was much more exciting in August than stocks.
As Hartnett points out in the "Biggest Picture" segment of his latest weekly Flow Show (available to pro subscribers), the 10-Year US Treasury is on course for a 3rd consecutive loss (after -3.9% in ’21, -17.0% in ’22 and -0.3% in ‘23), something which has not occurred once in the 250-year history of US republic since 1787.
