The Best "AI Bubble Trade": Going Long Both "Arrogance" and "Prejudice" Simultaneously

Bank of America believes the optimal strategy under the AI bubble is to simultaneously go long "arrogance" (AI tech) and "prejudice" (neglected, out-of-favor assets), while shorting AI bonds. Despite the Bank of America Bull & Bear indicator being in extreme territory, funds are flowing into gold and commodities, with private client equity positioning hitting record highs. Amid debt pressures and yield variables, avoiding the dollar and bonds remains the main theme.