Michael Hartnett gets lost in China

Monday 19 January 2026

BofA’s master strategist is bullish on China.

The Price is Right:“new world order = new world bull” as Trump drives global fiscal excess; stay long international stocks (Chart 3) as US exceptionalism positions rotate to global rebalancing (note $1.6tn US equity inflow in 2020s vs. just $0.4tn to global funds–Chart 4); China our favorite long as end of deflation catalyst for Japan & Europe bull markets shifts to China.

I don’t think so. China is Japanifying at spectacular speed as the property bust kills bank lending.

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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.