Bank of America warns of "policy shift bubble": $164 billion flows into U.S. stocks, interest rate cut expectations + tax reduction bill may create massive risks

Bank of America strategist Michael Hartnett warned that as the market anticipates interest rate cuts from the Federal Reserve, $164 billion has flowed into U.S. stocks, increasing the risk of a speculative bubble. The report pointed out that a policy shift towards tax cuts and interest rate reductions could create extremely high bubble risks in the second half of the year, leading to a weaker dollar. The S&P 500 index is approaching historical highs, and the yield on 10-year U.S. Treasury bonds has fallen by more than 30 basis points. Hartnett recommends constructing a barbell investment portfolio to balance risk and return