Buy China stocks, BofA's Hartnett says

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Buy China stocks, BofA's Hartnett says

Investing.com -- US equity funds are set to close 2024 with a record $480 billion in annual inflows, while China equities witnessed their largest weekly inflow in nine weeks at $5.6 billion, according to Bank of America’s latest weekly report.

BofA strategists led by Michael Hartnett highlighted growing investor capitulation into AI leaders, noting the “Magnificent Seven” mega-cap tech stocks have a trailing price-to-earnings ratio of 62 times—exceeding prior bubble highs.constituents outperforming, reminiscent of the late 1990s. Hartnett points out that only central banks end market melt-ups historically, and expects the Federal Reserve to cut rates at its meeting next week.

Strategists believe Chinese stocks are positioned to continue driving higher, with entry points for international investors remaining attractive, particularly ahead of potential Q1 tariff adjustments.

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