Bank of America: Look to Cash, Gold and Volatility

By Chris Dieterich
19-May (Barron’s) — Not unlike the 1993 comedy “Groundhog Day,“ starring Bill Murray and Andie MacDowell, investors are doomed to relive a perpetual daisy chain of mediocre U.S. economic reports and lackluster returns from risky assets.

So says Michael Hartnett, Bank of America Merrill Lynch’s chief investment strategist, this week. The Federal Reserve wound down its monthly bond-buying program, dubbed quantitative easing, in October last year. Meanwhile, the central bank currently is waiting for the U.S. economy to show enough pep to withstand the first interest rate increase in eight years.

What to do?

“Raise some cash, add some gold, own volatility…”

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