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BANK OF AMERICA: The one-of-a-kind bull market is basically dead - here's what traders can do to protect themselves from the coming collapse

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BANK OF AMERICA: The one-of-a-kind bull market is basically dead - here's what traders can do to protect themselves from the coming collapse
Stock Market1 min read

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Reuters

  • Bank of America Merrill Lynch argues the equity bull market as we know it is over and urges investors to start looking ahead at how to combat the coming collapse.
  • It offers what it calls a "perverse" trade suggestion to help combat the economic recession that's likely to accompany any stock-market crash.

At this point, most observers know the ongoing equity bull market is the longest on record.

But there's another attribute that makes the 9-1/2-year bull run unique historically: its deflationary nature.

If you're unfamiliar with the concept of deflation, it refers to a general decline in prices for goods and services. As it relates to the market, Bank of America Merrill Lynch points out that as stocks have soared to record highs, brokerage commissions have slipped to $30 billion from $80 billion since 2000.

"It's been the most deflationary bull market of all time," Michael Hartnett, BAML's chief investment strategist, wrote in a recent client note. ...

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