🔴 [E1049] Authors edge up USD allocation to 30%, maintaining the greenback's role as a tactical stabiliser in an environment shaped by geopolitical tensions and episodic market stress.

💬 [E1074] Middle East conflict has disrupted the traditional bond-equity correlation, creating an environment where higher inflation expectations limit bonds' ability to protect against equity declines.

🔴 [E1036] No Fed rate cuts expected this year, but authors expect no recession either. BofA's base case assumes policy panic averts recession.

💬 [E1055] Watch European cyclical data and the rollout of the Industrial Accelerator Act (IAA) to gauge the strength of the EU recovery relative to the US.

💬 [E1148] Commodities exposure raised to 15% from 10% while reducing equities to 50% from 55% in response to Middle East conflict.

🔴 [E1775] Authors explicitly trim gold allocation from 10% to 7% for the first time since 2022, arguing rising volatility reduces its portfolio hedging benefits.

🟢 [E1029] The Middle East conflict has disrupted traditional bond-equity correlation, creating an environment where higher inflation expectations limit bonds' ability to protect against equity declines. Authors raise commodity exposure to 15% from 10% while reducing equities.

🟢 [E1067] Long Hyperscalers CDS to hedge against risks from excessive AI-related capex and potential tech-sector balance-sheet strain.

🟢 [E1063] Corporate credit risks are mounting due to stretched private-asset valuations and the AI capex cycle, prompting a long Europe IG / short US High Yield stance. Peak liquidity losers include private credit.

🟢 [E1811] Authors expect no Fed rate cuts this year despite incoming Trump nominee Kevin Warsh — a non-consensus view.

🟢 [E1075] Long Hyperscalers CDS recommended to hedge against risks from excessive AI-related capex and potential tech-sector balance-sheet strain.