Last August, several of Bank of America's more skeptical analysts including Michael Hartnett and chief economist Ethan Harris wrote a piece on the law of large numbers, arguing that an ever-expanding list of uncertainties would likely undercut the markets going into year-end.
At the time, the main concerns were the trade war, a hawkish Fed, Brexit, Quitaly and Iran oil sanctions. And now, Bank of America once again warns that this fall, a similar set of concerns could come to a head and halt the current rally in global equity markets.
As always, the trade war is at the top of the list. . . .continued.