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Michael Hartnett of BofA continues his rich vein of form. My only comment is that Hartnett is far too sanguine about China. Its property market and a CNY deval should be on his “credit event vulnerabilities” list.
Heard on the Street: “Only time you’ve ever seen this level of pessimism and not made money being contrarian long was Lehman.”
The Price is Right: NYSE held crucial 200-week MA of 14k, XBT 30%, HSTECH 33%, XBI 36% from lows, all lead indicators of bear market; price reaction to NS1, EPS, Italy (so stylishly Machiavellian to collapse govt day before ECB), 50bps ECB… prices have discounted much bad news & sentiment rock-bottom (see BofA FMS & BB @ 0).
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.