The 'Ghosts of 2007' and the graybeard 'Nifty 50': BofA looks at the rare situation in markets and finds ominous parallels to the GFC and the dotcom bubble

The U.S. Federal Reserve’s looming decision on whether to cut interest rates in September 2025 is sparking heightened concern on Wall Street, as strategists at Bank of America (BofA) Securities draw unsettling parallels to the months preceding the 2007-08 financial crisis. A recent Liquid Insight report, published August 14 by strategist Howard Du and his team, warns that the current monetary and inflation landscape is flashing signals reminiscent of the last time the Fed cut rates into a rising inflation environment. “This is a possible but historically rare regime,” they added. The last time it happened was from the second half of 2007 to the first half of 2008, they said in their note titled, “ghosts of 2007.”

At the same time, a separate BofA Research note, by the Equity & Quant s