How to Hedge an AI Bubble: BofA Shares ‘Perfect’ Trade for Investors
There’s a “perfect” trade for investors who are scared of getting caught in an AI-fueled bubble that could one day pop.
Strategists at Bank of America outlined what they believe is the “perfect hedge” to the booming artificial intelligence trade — “a way to invest in AI, without investing directly in AI,” they wrote in a note on Thursday.
Analysts said investors should look at “transition strategies” that benefit from proximity to AI but offer protection against “AI-driven swings, anchored by policy, geopolitics, and supply chain fundamentals.”
The bank, which said its analysts didn’t believe the bull market in stocks represented an AI bubble, acknowledged the risks to investors, particularly given high…
