BAML: Market Is Ignoring Rate Hikes As Well As Troubling Events

The US Federal Reserve is expected to “remove the punch bowl,” a Bank of America Merrill Lynch notes, as the US economy is “booming” and aggressive rate hikes are on the horizon.  This comes amid numerous analysts are now questioning if the US central bank will hike three or four times in 2016. There are issues – with French elections among them – but BAML’s view is that investors might want to buy on the dip.

Economic data is coming in hot, gaining momentum

That data is speaking volumes for where the economy stands, and it is surprising.

The first jobs number under the...