PremiumOne week after urging Bank of America clients to keep "taking chips off the table" - despite stocks ignoring the highest CPI print in 3 years and blowing through to new record highs, and then also ignoring the very hawkish FOMC, Warsh's first - until "tighter financial conditions peak once Warsh turns hawkish at the July 29th FOMC", in his latest rather brief Flow Show note (available here to pro subs), BofA's Michael Harnett summarizes the current market landscape with the letter V for Victory, Votes and Vigilantes, with markets needing the latter two for the biggest tech bubble since 2021 to burst.We start with Victory:
Hartnett: Stock Bubbles Are Always Ended By Voters And Vigilantes
V is for Victory, Votes and Vigilantes (and Vol events)... and bulls will get “yippy” if no big bounce in Trump approval by Sept.
TL;DRAI
Hartnett (BofA) warns of a 2021-scale tech bubble despite markets ignoring hawkish Fed moves and elevated CPI; urges profit-taking. For tech managers, peak asset allocation risk looms; bubbles burst via voter/regulator intervention, not economic data.
106 words~1 min read
