Bank Of America Merrill Lynch’s Michael Hartnett – The Great Rotation

Consuelo Mack WealthTrack “The Great Rotation” — premiering nationwide beginning tomorrow, Friday, February 3 at 7:30 p.m. ET on public television (check local listings**) and on — features an exclusive interview with Bank of America Merrill Lynch Global Research‘s Chief Investment Strategist Michael Hartnett, who describes the mega changes occurring in the global economy and what they mean for investors.

Michael Hartnett

Anchor and Executive Producer Consuelo Mack offers this interview preview: “Hartnett explains why he and his team believe we are in the midst of a ‘great rotation’ occurring in multiple areas including the global economy, markets and trade. He describes it as a new era transitioning from Davos Man to Joe Six-Pack.”

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Here is the video preview transcript:

Michael Hartnett:

“In the past 10 years you’ve been in an economic environment where there hasn’t been a lot of growth. There hasn’t been a lot of inflation, and interest rates have come down and down and down. That’s been incredibly positive for certain asset classes. It’s been great for the one percent. It’s been great for capitalists. It’s been great for bonds. It’s been great for what the rich people buy and own like sort of high-quality…”

Consuelo Mack:

“Financial assets.”

Michael Hartnett:

“Financial assets. They’ve done incredibly well, whereas a lot of other stuff that is associated with Main Street — it may be commodities, it may be value stocks, of course the banks have been left behind in their wake. So if suddenly you’ve got this political revolution that’s telling you that all these populist policies are coming along and these populist policies suddenly are going to make growth and inflation and interest rates go in a different direction, you’re going to have a different portfolio. And so the flip that we are talking about is all these assets, which we dub Davos Man assets, are going to underperform now relative to what we call Joe Six-Pack assets, which are things like commodities, certain equities, value stocks, banks. It could be…”

Consuelo Mack:

Small cap stocks.

Michael Hartnett:

“Certainly small-cap, which have already done very well. So that’s the idea.”