{"id":33062,"date":"2023-07-08T11:55:39","date_gmt":"2023-07-08T15:55:39","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/heres-the-new-pain-trade-and-it-involves-rates-tech-stocks-and-the-japanese-yen-says-bank-of-america\/"},"modified":"2023-07-08T11:55:41","modified_gmt":"2023-07-08T15:55:41","slug":"heres-the-new-pain-trade-and-it-involves-rates-tech-stocks-and-the-japanese-yen-says-bank-of-america","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=33062","title":{"rendered":"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America"},"content":{"rendered":"
\n

What combination of market moves could rattle investors?<\/p>\n

According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to speak, would be lower bond yields with a lower Nasdaq and a stronger Japanese yen.<\/p>\n

\u201cEvery billionaire minting same long T-bills, long Nasdaq barbell\u2026biggest Q3 pain trade is lower yields, lower Nasdaq, plus higher yen\u2026no one has that on,\u201d the strategists say in their weekly flow show commentary.<\/p>\n

\n

No carry trade, they say, is bigger than long the Mexican peso against the Japanese yen
\n MXNJPY,
\n -0.80%<\/bg-quote>.<\/span>
\n This year the Mexican currency has vaulted 23% against its Japanese counterpart. A carry trade involves borrowing in a low interest-rate currency to fund an investment at a higher rate.<\/p>\n

The Nasdaq
\n COMP,
\n -0.13%<\/bg-quote>
\n also has seen meteoric gains this year, with the Nasdaq Composite jumping 31% so far. Techs have weathered higher rates from the artificial-intelligence speculative frenzy, though they do to tend to react to changes in the interest rate environment. Tech stocks have led gains for the S&P 500
\n SPX,
\n -0.29%<\/bg-quote>,<\/span>
\n up 14.9% year-to-date, while the Dow Jones Industrial Average
\n DJIA,
\n -0.55%<\/bg-quote>
\n lags behind, up 2.4%.<\/p>\n

Hartnett and team say AI remains a narrative based on speculative numbers, albeit impressive ones given ChatGPT usage. They say a \u201csell the last hike\u201d by the Fed move will hit tech the hardest, but \u201cif AI and Magnificent 7 can shrug off new rates-shock then \u2018baby bubble\u2019 set to mature into something bigger in the second half.\u201d<\/p>\n

The Magnificent Seven refers to Apple
\n AAPL,
\n -0.59%<\/bg-quote>,<\/span>
\n Nvidia
\n NVDA,
\n +0.95%<\/bg-quote>,<\/span>
\n Meta Platforms
\n META,
\n -0.50%<\/bg-quote>,<\/span>
\n Tesla
\n TSLA,
\n -0.76%<\/bg-quote>,<\/span>
\n Amazon.com
\n AMZN,
\n +1.11%<\/bg-quote>,<\/span>
\n Microsoft
\n MSFT,
\n -1.19%<\/bg-quote>
\n and Alphabet
\n GOOGL,
\n -0.52%<\/bg-quote>.<\/span>\n <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

What combination of market moves could rattle investors? According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to speak, would be lower bond yields with a lower Nasdaq and a stronger Japanese yen. \u201cEvery billionaire minting same long T-bills, long Nasdaq barbell\u2026biggest Q3 pain trade is lower yields, lower […]<\/p>\n","protected":false},"author":1,"featured_media":33063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-33062","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nHere\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America | iFintechWorld<\/title>\n<meta name=\"description\" content=\"What combination of market moves could rattle investors? According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=33062\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"What combination of market moves could rattle investors? According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=33062\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-08T15:55:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-08T15:55:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1688831740_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=33062#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=33062\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America\",\"datePublished\":\"2023-07-08T15:55:39+00:00\",\"dateModified\":\"2023-07-08T15:55:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=33062\"},\"wordCount\":297,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=33062#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=33062\",\"url\":\"https:\/\/ifintechworld.com\/?p=33062\",\"name\":\"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-08T15:55:39+00:00\",\"dateModified\":\"2023-07-08T15:55:41+00:00\",\"description\":\"What combination of market moves could rattle investors? According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=33062#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=33062\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=33062#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America | iFintechWorld","description":"What combination of market moves could rattle investors? According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=33062","og_locale":"en_US","og_type":"article","og_title":"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America | iFintechWorld","og_description":"What combination of market moves could rattle investors? According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to","og_url":"https:\/\/ifintechworld.com\/?p=33062","og_site_name":"iFintechWorld","article_published_time":"2023-07-08T15:55:39+00:00","article_modified_time":"2023-07-08T15:55:41+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1688831740_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=33062#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=33062"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America","datePublished":"2023-07-08T15:55:39+00:00","dateModified":"2023-07-08T15:55:41+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=33062"},"wordCount":297,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=33062#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=33062","url":"https:\/\/ifintechworld.com\/?p=33062","name":"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-08T15:55:39+00:00","dateModified":"2023-07-08T15:55:41+00:00","description":"What combination of market moves could rattle investors? According to Bank of America strategists led by Michael Hartnett, the new pain trade, so to","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=33062#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=33062"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=33062#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Here\u2019s the new pain trade, and it involves rates, tech stocks and the Japanese yen, says Bank of America"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/33062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33062"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/33062\/revisions"}],"predecessor-version":[{"id":33064,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/33062\/revisions\/33064"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/33063"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}