Bank of America’s Hartnett, who accurately predicted the major drop: the "sell signal" has ended, and investors will "return to tech stocks in mid-November," with a key focus on "chip prices."
Although Bank of America’s “sell signal” has ended, this is by no means a signal to buy the dip. The Federal Reserve's restoration of credibility and the alleviation of concerns over AI financing, the two prerequisites for returning to risk assets, have not been fulfilled. Currently, the cracks in AI financing are widening, and tech stocks are extremely crowded. Strategists warn that whether we can return to tech stocks in November hinges entirely on the “semiconductor prices” as the decisive factor. The short-term recommendation is to temporarily avoid technology, maintain a defensive stance, and focus on small-cap stocks and REITs.
