[Bank of America warning: the current market shows the characteristics of the late foam, and it is suggested to adopt defensive allocation strategy] BlockBeats news, on May 29, Bank of America pointed out that the current market is still in the "extremely bullish" range, showing the characteristics of a typical late foam. Although its core inverse indicator, the bull/bear index, has fallen to 9.4, the risk asset "sell" signal issued since December last year is still valid. Bank of America stated that funds are flowing from "AI worship" assets such as the tech giants and Bitcoin to sectors benefiting from the recovery of the real economy, such as silver, industrial metals, regional banks, and small cap value stocks. It warns that once AI cloud service giants announce capital expenditure cuts, it could become an important catalyst for market style switching. The report recommends that investors adopt a more defensive allocation strategy in 2026, and look forward to long-term US treasury bond bonds as a risk hedging tool. At the same time, it is believed that as the market shifts its focus from large growth stocks to assets related to the real economy, small cap value stocks and emerging market stocks are expected to take over large technology stocks and become the main beneficiaries of the next long-term bull market. In addition, Bank of America pointed out that "buying everything except the US dollar" is becoming a new market trend, and the increase in demand for commodities by AI may further benefit emerging market assets.