---
title: "Hedge against AI bubble, Bank of America recommends gold and Chinese stocks"
description: "Bank of America strategists pointed out that amid the artificial intelligence trading frenzy driving up valuations, gold and Chinese stocks are the best hedging tools against bubbles. The forward pric"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/263763088.md"
published_at: "2025-10-31T13:32:06.000Z"
---

# Hedge against AI bubble, Bank of America recommends gold and Chinese stocks

> Bank of America strategists pointed out that amid the artificial intelligence trading frenzy driving up valuations, gold and Chinese stocks are the best hedging tools against bubbles. The forward price-to-earnings ratio of the S&P 500 Index is about 23 times, with technology stocks accounting for more than one-third. The Bank of America team is optimistic about gold and Chinese stocks, believing they can effectively hedge against inflation risks brought by economic expansion. Chinese stocks have performed well this year, with the MSCI China Index rising 33%

According to the Zhitong Finance APP, Bank of America strategists have stated that as the artificial intelligence trading boom drives up valuations, gold and Chinese stocks are the best hedging tools against this bubble or prosperity.

Currently, the forward price-to-earnings ratio of the S&P 500 index is about 23 times, significantly higher than the average level of 16 times over the past 20 years; the so-called "seven tech giants" account for more than one-third of the index, with a forward price-to-earnings ratio as high as 31 times.

![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251031/1761917031915431.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

The Bank of America team, led by Michael Hartnett, wrote in their report: "The leading position of AI stocks remains unshaken, and we are optimistic about gold and Chinese stocks as the best hedges against prosperity/bubble."

Since hitting a low in early April, this leading sector has driven the market capitalization of the S&P 500 to increase by about $17 trillion. This week, chip manufacturer Nvidia (NVDA.US) became the first company in the world to surpass a market capitalization of $5 trillion.

Additionally, strong earnings reports from Amazon (AMZN.US) and Apple (AAPL.US) boosted U.S. stock futures on Friday; the market seems poised for a rebound, following some declines due to concerns over Meta Platforms (META.US) plunging due to investor worries about massive AI investment expenditures.

Bank of America strategists pointed out that investors are positioning themselves for robust economic growth in 2026, expecting U.S. interest rates to decline and the Trump administration to introduce market-supportive policies. Gold can hedge against inflation risks that may arise from loose policies and economic expansion.

Gold prices have recently retreated from a historical high of over $4,300 per ounce, partly due to investors assessing the progress of the U.S.-China trade truce. Data shows that global gold funds experienced a record outflow of $7.5 billion in a single week, following four consecutive months of net inflows.

So far this year, Chinese stocks have significantly outperformed the S&P 500 index, with the MSCI China Index soaring 33%, thanks to optimistic expectations regarding China's generative AI competitiveness following the rise of DeepSeek.

When Trump was elected president, Hartnett's team accurately bet on international stocks in Asia and Europe, believing that loose policies in these regions would drive stock market gains

### Related Stocks

- [GLD.US - SPDR Gold Shares](https://longbridge.com/en/quote/GLD.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 达利欧家办重仓黄金！彻底退出桥水后首曝美股持仓，规模升至 5 亿美元 | 达利欧家族办公室自疫情以来首次披露美国股票投资情况。截至去年年底，其在美股市场持仓约 5.03 亿美元，较 2021 年初增长约三分之一。其中超过四分之三资金配置在黄金 ETF，其余分散布局美债及标普 500 指数等资产。分析称，这一举动显 | [Link](https://longbridge.com/en/news/276472669.md) |
| “AI 交易” 的关键变量：服务业敞口越高，AI 颠覆风险越大，“AI 基建” 最有利 | 大摩量化研究显示，“服务业敞口” 是 AI 投资的关键变量，与收益呈显著负相关。由于市场担忧 AI 颠覆，服务业敞口高达 53% 的 “AI 采用者” 表现垫底。相反，“AI 基础设施” 敞口仅 14%，受颠覆风险最小且受益于资本支出，在六 | [Link](https://longbridge.com/en/news/275977957.md) |
| 学习英伟达刺激芯片销售，AMD 为 “AI 云” 借款做担保 | AMD 为扩大市场份额祭出金融 “狠招”！为初创公司 Crusoe 的 3 亿美元购芯贷款提供担保，承诺在其无客户时 “兜底” 租用芯片。这一复刻英伟达 “租卡云” 路径的策略虽能短期推高销量，但也令 AMD 在 AI 需求放缓时面临更大的 | [Link](https://longbridge.com/en/news/276401504.md) |
| 冬海与谷歌深化合作以 AI 驱动创新 包括游戏 \| 联合早报网 | 冬海集团（Sea Limited）与谷歌深化合作，签署谅解备忘录，推动人工智能（AI）在游戏、代理商务和创新代理支付等核心业务的应用。双方旨在通过 AI 提升用户体验和运营效率，冬海的游戏业务 Garena 将利用谷歌的 AI 解决方案改善 | [Link](https://longbridge.com/en/news/276319833.md) |
| 3 只目前值得购买的 AI 股票 | 这些人工智能（AI）股票对长期投资者显示出良好的上涨潜力 | [Link](https://longbridge.com/en/news/276392243.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.