Bank of America strategist Michael Hartnett warned that the risk of a speculative bubble in U.S. equities is mounting after investors funneled about $164 billion into the market so far this year, one of the largest first-half inflows on record. In a note dated 27 June, Hartnett said expectations that the Federal Reserve will begin cutting interest rates, combined with the prospect of new tax incentives, have pushed the S&P 500 back toward record levels and weakened the dollar. Hartnett described the current environment as a “pivot from tariffs to stimulus,” arguing that the policy backdrop now favors aggressive risk-taking. While he recommended a so-called barbell strategy that pairs U.S. growth stocks with global value shares, the strategist cautioned that sustained inflows could inflate valuations to unsustainable levels in the second half of 2025.