BofA’s Hartnett Warns Risk-Off Mood to Dominate as Real Yields Hit 3%

Hartnett's call matters less as a forecast than as a sentiment marker: the strategist who flagged this summer's extreme bullishness now says that regime has ended, and the trigger he names — real yields at 3% — is the same discount-rate pressure that tends to weigh on long-duration assets, including crypto and tokenized real-world assets. The political layer is the underappreciated part: a Fed hike framed around credibility plus a possible Democratic wave introduces two macro catalysts that markets cannot price cleanly. Whether risk-off actually dominates the next few weeks, and whether the AI trade decouples from the broader drawdown, is the open question.