Hartnett: "Mission Accomplished"

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by Tyler Durden
Saturday, Jul 15, 2023 - 03:00 PM

With stocks enjoying a post-CPI blow-off top, one where all the shorts are mangled and crushed in one giant last gamma-squeeze hurrah that pushes the market to its breaking point, in his latest Flow Show note, BofA's Michael Hartnett - who has adopted a rather aloof and bemused approach to this latest bout of market stupidity - recaps the fast changing zeitgeist as follows "End of inflation, end of war, end of US$ bull…buy commodities & EM."

With just the right dose of self-deprecation and sarcasm, the strategist looks back at events in the latest week and taking a page out of George W. Bush's playbook, says “Mission Accomplished” because...

  • June CPI (headline 2% to 9% to 3% roundtrip is now complete),
  • bond bears routed as 10-year UST yield heads from 4% to 3.5%,
  • real yields back away from 2%,
  • "risk assets en fuego as Goldlocks schools us bears."