Hartnett, Chief Strategist of Bank of America Securities, has listed three major thresholds that will trigger comprehensive hedging this summer: the Mag7 ETF falling below $60, the US dollar falling below $110 against the Japanese yen, and the yield curve once again inverted. US stock funds recorded a net outflow of $8.5 billion, after experiencing a net inflow of $119.2 billion. Vera Rubin rack memory prices have risen 435%, and Goldman Sachs predicts AI capital expenditures to reach $1.4 trillion by 2027. Funds flow from tech giants to semiconductors, small and medium-sized enterprises, housing, and REITs. Hartnett believes that gold below $4000 has allocation value, and investing in long end US bonds is a long-term trade, with a long-term long position in emerging markets. Since Federal Reserve Chairman Kevin Walsh took office on May 22, US Treasury bonds have risen 3.2% and stocks have fallen 1.6%.
