Gold and China Stocks Seen as Top Hedges Against AI Bubble by BofA
Bank of America strategists led by Michael Hartnett identify Gold and Chinese equities as prime hedges against overheated AI stocks, citing their resilience amid stretched valuations. The iShares MSCI China ETF's 37% year-to-date surge underscores the region's momentum, with analysts projecting sustained AI-driven growth through 2026.
Inflationary risks loom as markets anticipate stimulative policies under a potential TRUMP administration, bolstering gold's appeal as a store of value. 'AI equity leadership isn't budging for now,' Hartnett notes, framing the precious metal and China exposure as tactical portfolio stabilizers.