Bank of America: Bullish on small and medium caps, decreasing attractiveness of tech giants.

A strategist from Bank of America said that as the attraction of tech giants wanes, small and mid-cap stocks in the US are the best direction for mid-term positioning before the elections. The team led by Michael Hartnett pointed out that Trump's "aggressive intervention" measures to lower energy, healthcare, credit, housing, and electricity prices are putting pressure on sectors such as energy giants, pharmaceutical companies, banks, and large tech companies, making small and mid-cap stocks the main beneficiaries of this round of "prosperity" as the mid-term elections approach. In recent times, investors have been accelerating their exit from tech stocks due to concerns about the impact of artificial intelligence and are now looking for trading opportunities that are expected to benefit from the Trump administration's measures to reduce living costs. At the same time, a large category of companies that are more sensitive to improving economic growth prospects are outperforming the broader market. Bank of America points out that the shift from a "light asset" to a "heavy asset" business model indicates that the market dominance of the "seven tech giants" is facing a "significant threat".