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.”

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...