ChainThink reports that, according to a recent research report by Michael Hartnett, Chief Strategist at Bank of America Securities, on August 15, in the current AI bubble environment, the optimal strategy is to simultaneously go long on leading AI tech companies and neglected, long-overlooked assets, while recommending a short position in AI bonds.
The report shows that the Bank of America Bull & Bear Indicator slightly declined from 9.7 to 9.3, remaining in the extreme bullish zone and maintaining a "sell" signal, yet global stock markets have still risen since the signal was issued in May.
Meanwhile, funds continue to flow into gold and commodities, technology stocks experience their largest weekly outflow in seven weeks, and private clients' equity positions reach an all-time high.
Hartnett believes that in the final stages before a dominant bubble peaks, emerging markets or oversold cyclical assets typically benefit from spillover effects, and the consumer sector is currently the most likely to replicate this pattern.
The report also noted that over $1 trillion in AI capital expenditures combined with negative cash flow will create significant issuance pressure on related bonds;
Amid U.S. Treasury debt approaching $40 trillion and rising debt servicing costs, Bank of America views yield movements as the key variable and notes that foreign exchange intervention signals a desire to prevent the 10-year U.S. Treasury yield from exceeding 5%.