Bank of America strategists: The record rebound in US stocks may provide a profit opportunity for dovish signals from the Fed.

[Coin World] Strategists at American banks pointed out that the record rebound in the U.S. stock market presents an excellent opportunity for the Fed to take profits when it signals dovish tones at the Jackson Hole meeting. The team led by Michael Hartnett stated that investors are flocking to risk assets from stocks to Crypto Assets and corporate bonds, as they optimistically believe that the Fed will drop interest rates to support the weak labor market and ease America's debt burden. Hartnett wrote in a report that if Fed Chair Powell releases dovish statements at the Jackson Hole meeting, it could lead to a decline in the stock market, as investors "buy the rumor, sell the fact." He reiterated that he prefers international stocks over U.S. equities, a view that has proven correct this year. Hartnett recently warned that the stock market may be forming a bubble. He believes that as investors seek to combat inflation and hedge against a weakening dollar, gold, commodities, Crypto Assets, and emerging market assets will be the biggest winners.