[Bank of America: Fed's October Rate Hike Could Be the Biggest Positive for U.S. Stocks] Odaily Planet Daily News - While global stock market investors still shy away from the term 'rate hike,' Bank of America strategist Michael Hartnett has put forward a counterintuitive view: if the Federal Reserve chooses to proactively raise interest rates in October, it may not be a negative but could instead become the biggest positive factor supporting risk assets and underpinning U.S. stocks. In Hartnett's view, under the current circumstances, if the Federal Reserve remains on hold for too long, bond investors will continue to demand higher term premiums, pushing long-term yields further upward and ultimately forcing financial conditions to tighten spontaneously. Conversely, if the Federal Reserve proactively raises rates during its October policy meeting, sending a strong signal of preemptively curbing inflation risks, long-term yields may stabilize. At that point, the short-term shock from a rate hike could be smaller than the greater damage caused by disorderly volatility in the bond market. (CLS)