The risk of a hard landing for the US economy is rising. It is recommended to sell stocks when the Fed cuts interest rates for the first time.

BlockBeats news, on August 2, Bank of America strategist Michael Hartnett said that investors should sell stocks when the Fed cuts interest rates for the first time due to the increased likelihood of a more severe recession in the United States. Hartnett pointed out that the ISM manufacturing index seems to be highly correlated with non-farm payrolls in terms of direction. The only time the index was in a contraction zone for a long time while non-farm payrolls maintained positive growth was between 1984 and 1986. At the same time, strategists said that the extent to which risk assets preemptively digest the Fed's rate cuts in 2024 has reached its limit, with the S&P 500 index rising 32% in the past 9 months. In contrast, the average increase before the Fed's first 12 rate cuts since 1970 was only 2%. (Jinshi)