BofA’s excellent Michael Hartnett returns for 2023. Lots of good ideas here.
The Price is Right: end of era…monetary tightening caused collapse in value of negative yielding debt from $18tn in Nov’21 to zero today (Chart 3); same period NYFANG (Big Tech) market cap sank $5tn in value; US/Japan/EU/UK governments to issue $6tn bonds in‘23 (US national debt to rise $2bn today, another $15bn this week…)
Tale of the Tape: start of era…past 2 months Europe stocks outperformed US by 1500bps (Chart 4) driven by lower price of oil ($100/bl to $80/bl), natural gas (-50%), China reopening, peak CPI/PPI (Chart 5), big credit rally (€IG spreads 60bp tighter).