The bank pointed out that the U.S. stock market may be six hundred billion dollars for six reasons

Although the US stock market recovery after a number of deduction, this is not the final outcome. When began to show signs of recovery, reasons for pessimism of many objects, the market may face a reduction.

Michael Hartnett, a chief strategist, gathered in the US investment bank Merrill Lynch (BAML), is one of them. You gave us six potential reasons may cause the stock market to $six trillion.

This makes people feel surprised Hartnett forecast track. For months, he has been criticized, he called "Yi Carlos trade", a continuous rise in the market downturn, from 2016 to the present. You are sending signals to Wall Street before selling power into the adjustment of the accident 10%. You see the formula by a factor of four for the market to decrease.

The following are six reasons that the stock market for Hartnett reduction.

1) position

Hartnett is one of the main points you mentioned in the report is the latest "over-optimistic state". Your attitude, overconfidence of investors is a bad signal because, in the long term, this attitude makes the world blind investment risks before.

Hartnett tracking index Baml bulls and bears, a digital signal, the market mentality. Although the area of "super recently" before the time is reduced, but the Hartnett found that the index is still high. You also mentioned the form of return money 17,7 billion dollars market last year to sell stocks when the market shares, reduction.

2) profit

Dynamic revenue growth has been the most important point of growth stocks, through nine years of a market - but what would happen if the dynamics of slow down? This is about Hartnett. He warned that profits have peaked at the beginning and that this recession could eventually affect a negative equity investment is trustworthy.

3) policy

Specifically, Hartnett to discuss monetary policy. He said, at a certain moment, the central bank will no longer go to view any stimulus, economic stimulus is gradually depleted. This is not a lucky sign after the stock market, the central bank seems to continue in the new capital market for many years.

4) protectionism

This is perhaps the most reasonable motivation, at the present time, when President Donald Trump recently announced that it will use tariffs on steel and aluminum, and comments "is a good trade war". Regardless of the time of the current market recovery free trade war risk warning Hartnett fade, may need to "deflation", namely, the stock price drops, lower interest rates, in order to prevent the escalation of the war trade.

5) price changes

Hartnett is only one motive behind the increase of thrust, the U.S. stock market in the past time, especially if compared to Hartnett in recent years, the majority of the stock technology fail to establish a new peak, while the interest rate difference bonds remained at the bottom.

In addition, Hartnett comments are from the beginning to the present global stocks and bonds than the government, this is a bad signal. The logic is simple: when the element to help the stock market hit a record did not take the police, then the stock price will go.

6) market pain

A final reason relates to three hot topics: inflation, interest rates, and changes. Many years ago, three