Premium“Buy on the cannons, sell on the trumpets” - Baron Rothschild, appearing as the Zeitgeist quote in Michael Hartnett's May 29 Flow ShowLast week, BofA's Michael Hartnett finally tore off the bandage and admitted that "This Is The Biggest Bubble Since The Railroads", but gave his readers 2 reasons to wait before selling, to wit: "no one is cutting longs in stocks i) before historic IPOs and ii) big top Policy tightening which will come after CPI hits 4-5% in the coming months" which has historically preceded major market drawdowns (as detailed in "Stocks And Bonds Are On A Collision Course").
Hartnett: What To Trade When This Bubble Bursts
The post-bubble investor roadmap is long bonds (10-year yield down ~50bps in 6 months after market tops), and long defensives, and equity sectors which dramatically underperformed in last months of the bubble: the classic “long humiliation, short hubris” trade.
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