{"id":979,"date":"2026-02-07T23:27:43","date_gmt":"2026-02-07T23:27:43","guid":{"rendered":"https:\/\/foreignnewstoday.com\/?p=979"},"modified":"2026-02-07T23:27:43","modified_gmt":"2026-02-07T23:27:43","slug":"why-bofas-hartnett-sees-a-main-street-boom-ahead-of-the-midterms","status":"publish","type":"post","link":"https:\/\/foreignnewstoday.com\/?p=979","title":{"rendered":"Why BofA’s Hartnett Sees A Main Street Boom Ahead Of The Midterms"},"content":{"rendered":"


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Bank of America’s top investment strategist Michael Hartnett<\/strong> is urging investors to flip the script, backing Main Street over global elites as cooling inflation, AI disruption and political pressure reshape markets ahead of U.S. midterms.<\/a><\/p>\n

The expert laid out a bold call in his latest Flow Show report: Investors should “stay long Detroit, short Davos” \u2014 favoring U.S. small and mid\u2011caps, banks, REITs, emerging markets, and international equities over the so\u2011called Magnificent 7 and other Big Tech giants.<\/p>\n

Hartnett’s core message is that markets are beginning to price a political and economic pivot toward affordability.<\/p>\n

That shift matters.<\/p>\n

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Assets punished during the big bond bear market of the early 2020s are quietly outperforming the elite “Davos” trades that dominated portfolios for years.<\/p>\n

Since the Trump inauguration in January 2025, the so-called “Bro Billionaire” basket \u2013 an equally weighted mix of Nvidia Corp. (NASDAQ:<\/a>NVDA<\/a>)<\/strong>, Meta Platforms Inc<\/strong>. (NASDAQ:<\/a>META<\/a>), Palantir Technologies Inc<\/strong>. (NYSE:<\/a>PLTR<\/a>), Tesla Inc<\/strong>. (NASDAQ:<\/a>TSLA<\/a>), ARK Innovation ETF<\/strong> (NYSE:<\/a>ARKK<\/a>), Apollo Global Management Inc.<\/strong> (NYSE:<\/a>APO<\/a>), Blackstone Inc<\/strong>. (NYSE:<\/a>BX<\/a>), Oracle Corp<\/strong>. (NYSE:<\/a>ORCL<\/a>), Coinbase Global Inc<\/strong>. (NASDAQ:<\/a>COIN<\/a>), and Bitcoin<\/strong> (CRYPTO: <\/a>BTC<\/a>) are up roughly 6%, while U.S. small caps \u2013 tracked by the iShares Russell 2000 ETF<\/strong> (NYSE:<\/a>IWM<\/a>) \u2013 are up closer to 13%.<\/p>\n

That divergence may look modest, but historically it’s how regime changes begin: slowly, then suddenly.<\/p>\n

The expert indicates that a series of macroeconomic and political shifts are underpinning this rotation. With inflation surprises tilting to the downside and artificial intelligence (AI) adoption cooling the labor market, affordability pressures \u2014 on energy, healthcare, credit, housing, and electricity \u2014 have moved to the political foreground.<\/p>\n

Hartnett said the team stays long Main Street and short Wall Street until Trump’s approval rating rises on affordability-focused policy.<\/p>\n

Trending: This Real Estate Fund Pays 10x More Than the Average Savings Account \u2013 Invest From Just $100<\/a><\/strong><\/p>\n

A key risk sits with the former market leaders as Hartnett warns of a flip from asset-light to asset-heavy business models.<\/p>\n<\/p><\/div>\n