Covid-19 vaccine would likely mark the “big top" for the rally in stocks and credit markets, according to Bank of America Corp.With a surge in risk assets having recently pushed the S&P 500 Index to a record high, confirmation of a breakthrough along with a major recovery in jobs are needed to put a cap on the rally, strategists led by Michael Hartnett say.
They point out that while the market consensus is bullish, cross-asset positioning remains neutral rather than “excessively" optimistic.Writing in a note, the strategists also warn of the growing risk of a market correction and rising volatility as the U.S.