5 defensive trades to make if stagflation and hard-landing fears cause a stock sell-off, BofA says

DNY

• Stocks are vulnerable to a stagflation or hard landing rebound, says Bank of America's Michael Hartnett.
• Investor optimism is currently at a more than two-high high, but Hartnett says sentiment is overextended.
• The chief market strategist recommended five trades to make in order to hedge against these risks.

Stock markets face downturn risk if stagflation or recession anxiety re-materializes, Bank of America's top global strategist Michael Hartnett wrote on Tuesday.