Bank of America predicts volatile summer market with potential for bullish rip.

Bank of America's investment strategist, Michael Hartnett, warns that a recession is imminent, citing a slew of factors including an inverted yield curve, falling oil prices, declining imports in China, falling housing prices, and tightening lending standards. Despite fiscal policy remaining stimulatory and tight labor markets, Hartnett advises selling the S&P 500 if it gets above 4,200 as stocks are only pricing in an earnings per share decline of just 4%, while the market is also expecting “210 basis points or rate cuts peak-to-trough”. The Federal Reserve will deliver its interest rate decision next Wednesday.