Hartnett: "Buckle Up" If Disorderly Unwind Of Short Dollar Trade

Last week, Bank of America's Michael Hartnett, laid out the capitulatory upside case saying that "the Fed is cutting with gold, crypto, stocks, credit at all-time highs, and the US debt burden is threatening YCC" and reminded readers that - if history rhymes - the S&P may have another 50% upside in it for the next two years before the bubble bursts; he then proceeded to discuss how to trade a bubble...

• The average trough-to-peak gains are  244%, ending with average trailing PE of 58x, and equity index trading 29% above 200dma
• Today, the Magnificent 7 is the best bubble proxy... it is up 223% since Mar'23 lows, and trades at a trailing PE of 39x, and is currently 20% above 200dma, i.e. more to go.