The euphoria in equity markets following the Federal Reserve’s interest-rate cut is stoking the risk of a bubble, making bonds and gold an attractive hedge against any recession or renewed inflation,

The Federal Reserve’s hefty interest rate cut may prime a bubble in risk assets, Bank of America (BofA) said in outlining maneuvers for such a development. The Federal Open Market Committee is seeking to shove down real rates to stave off recessionary jobs cuts by small businesses,

With new easing cycle from the Fed kicking off, tech "bubble risks" are back, Bank of America strategist Michael Hartnett says.

One Bank of America strategist thinks the Federal Reserve’s decision to cut interest-rates by 50 basis points this week will ultimately end in tears for investors.

It doesn’t “get much better than that for risk, so investors are forced to chase” the rally, Michael Hartnett says in a note.