Hartnett: This Is How To Trade The 2026 "Run It Hot" Market

Last week, in his most recent Flow Show note, Michael Hartnett - who flipped fully-bullish around the time the Fed launched QE lite - wrote that "Markets Are Frontrunning 2026's "Run It Hot" Economy", and summarized his thesis in one of his zeitgeist quotes, to wit: “Fed QE, Nvidia chips to China, $2k stimmy checks, gas prices back below three bucks, no wonder we’re all max bullish.”

That view was confirmed a few days later when BofA published its latest, and last for 2025, Fund Manager Survey (full note available to pro subs) which found that investors are "bull positioned for "run-it-hot" PMI & EPS acceleration on rate cuts, tariff cuts, tax cuts." At the same time the BofA strategist cautioned that while he expects global EPS growth to be 9% in ’26 it was unlikely to "surprise to the upside given US unemployment up and bond vigilantes slowing AI capex boom, unless big surprise China stimulus."