Bank of America is steadfastly bearish on the AI bubble!
Hartnett says that today's capital misallocation is far more severe than what was observed in 1999 and 2000—
Technology stocks' weight in the S&P 500 has reached historic extremes, about 35% higher than the peak of the 2000 internet bubble.
In fact, only a few giants are being lifted, while many stocks have already emerged from bear-market declines.
Bank of America believes that the US equity market now exhibits several typical late‑bubble characteristics:
Strong indices, weak breadth, extreme concentration in leaders, capital reluctant to exit, narrative outweighing price discipline.
This also provides insight for crypto:
The crypto community's imagined AI bubble spillover has not materialized, and when US stocks enter a congested pullback, $BTC is likely to be sold first as a high‑beta risk asset, especially leveraged positions and altcoins, which could suffer catastrophic losses.
