Hartnett: How To Trade The Coming End Of US "Exceptionalism"

Last June, when the prevailing zeitgeist was still overwhelmingly bearish and when he himself - correctly - expected a broader risk-off swoon into Halloween, BofA's Michael Hartnett echoed something Goldman's Tony Pasquariello had just said, namely that "the biggest companies are seemingly getting bigger in most every industry -- witness tech, banking, energy, retail, healthcare, defense, on and on", when he wrote that "monopolistic tech is winning (pricing power, squeeze smaller suppliers)"; and since the market has grown bored of waiting for rates to cause a recession, it is now turning back to the “biggest companies = biggest margins = biggest PE’s.

hartnett how to trade the coming end of us exceptionalism

Little did Hartnett know just how much more fuel these “Monopolistic Bulls” still had, because since then the Magnificent 7 supergiants have added another 34% - driven mostly by the AI vanguards NVDA, MSFT and META - more than double most other market segments...

Authored by Tyler Durden via ZeroHedge February 24th 2024