These three stars need to align before investors rush back into stocks, Bank of America strategist says

Bank of America strategist Michael Hartnett suggests investors may want patience rather than haste, even after this week's steep equity selloff. His argument rests on the idea that stocks rarely bottom in isolation: conditions in other asset markets typically need to stabilize first, and until they do, rebounds can prove fragile.

Hartnett points to three developments outside equities that he says must align before a durable return to stocks makes sense. The takeaway is less about timing a single entry point and more about sequence—watching credit, rates, and other asset classes for signs that stress is easing rather than simply reacting to a lower stock price. A sharp drop alone, in this view, is not a buy signal.

For observers, the practical lesson is to treat cross-asset indicators as part of the toolkit. Equity weakness often coincides with strain elsewhere, and monitoring those markets can offer context on whether a selloff is nearing exhaustion or still unfolding. That doesn't guarantee outcomes, but it reframes the question from "is it cheap yet?" to "is the broader backdrop healing?"—a distinction worth watching in the sessions ahead.