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Buying Humiliation: Taking The Opposite Side Of Michael Hartnett's Emerging Markets Trade Of 2023

Benzinga Real-time News ·  Oct 10, 2022 11:42

Sell Hubris, Buy Humiliation

As ZeroHedge has pointed out, Bank of America's Michael Hartnett has been one of Wall Street's most accurate analysts recently.

Chart via ZeroHedge

In Hartnett's latest weekly note, summarized by ZeroHedge here, he offered a contrarian trade for 2023, buy emerging markets:

In line with this, his trading recommendation conclusion is, as usual,toSell Hubris, Buy Humiliation:

  • US equities as % MSCI World Index @ new all-time high 66%;
  • Tesla(NASDAQ:TESLA) market cap same as entire European banking sector (~$750bn);
  • regime change from Globalization to Isolationism = EM disinvestment + FX devaluation in "weak links" (Sri Lanka...
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