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'Exodus From Wall Street', 'Crypto Implosion': BofA's Hartnett Says Crypto and Speculative Tech Collapse Now Rivals Dot-com Bubble Crash and GFC

Stock Markets May 13, 2022 07:11AM ET
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© Reuters. 'Exodus From Wall Street', 'Crypto Implosion': BofA's Hartnett Says Crypto and Speculative Tech Collapse Now Rivals Dot-com Bubble Crash and GFC

Bank of America’s Michael Hartnett, one of the most prominent bears on the Street, said that an “exodus” is now taking place on Wall Street.

Hartnett’s comments accompany BofA’s flows in the week to Wednesday, which showed that investors pulled $6.2 billion from equities, $11.4 billion from bonds, $19.7 billion from cash, and $1.8 billion from gold.

The data also show the largest Treasuries inflow since March 2020 ($11.5 billion), the largest EM stocks outflow since June 2020 ($4.4 billion), the largest YTD outflow from tech stocks ($1.1 billion), and the 1st YTD outflow from materials ($0.9 billion).

The strategist also took note of the “crypto implosion” with Coinbase (NASDAQ:COIN) trading roughly 90% lower compared to all-time highs.

“Crash in crypto/speculative tech now rivals internet bubble crash (Nasdaq -73% peak-to-trough) & GFC (banks -78%); trading pattern of post-bubble assets always furious bear rallies amidst dead sideways trading range for couple of years,” Hartnett said in a client note.

The crypto crash “exacerbates Wall St 'fear & loathing', fear of VC 'marks', PE collapse, bank loans breakdown, dumping of Big Tech,” Hartnett added.

Hartnett also noted that the rally in bonds this week has not (yet) coincided with a rally in biotech, which is trading below 2018 and 2022 lows.

However, the strategist also has “good news” for bulls.

“Last of 'crowded trades' short Japan yen & long commodities starting to unwind, dollar not yet melting up into new territory,” he concluded.

By Senad Karaahmetovic

 
'Exodus From Wall Street', 'Crypto Implosion': BofA's Hartnett Says Crypto and Speculative Tech Collapse Now Rivals Dot-com Bubble Crash and GFC
 

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Comments (2)
gab nea
gab nea May 13, 2022 7:31AM ET
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what a collapse of cryptos! you call them currencies? they seem to pump and dump in cycles. no one know why or when they go up or down, or any useful daily uses. bad investment?
ronald reeves
ronald reeves May 13, 2022 7:31AM ET
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the tech behind it digital dna is very usefull.
Victor Cuello
Victor Cuello May 13, 2022 7:19AM ET
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When these guys say it is time to sell, you KNOW it is time to start buying!
ronald reeves
ronald reeves May 13, 2022 7:19AM ET
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u know it
 
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