A Democratic midterm sweep could make bonds the fourth-quarter contrarian play, says B. of A.’s Hartnett

Bank of America's equity strategist Hartnett said that if Democrats gain significant seats in midterm elections, lower economic growth assumptions and weaker stock performance could increase investor demand for bonds in the fourth quarter. Hartnett based this assessment on the relationship between expected growth rates and bond valuations. No specific election date or Democratic seat targets were mentioned in the statement.

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