Right now, equity assets represented by the seven major tech giants in the U.S. stock market are, in my opinion, being priced as safe-haven assets. - Just the pure cash and short-term highly liquid investments held on the balance sheets of the top few tech giants amount to hundreds of billions of dollars, surpassing the official foreign exchange reserves of most medium-sized sovereign nations. - These tech giants generate extremely stable free cash flows of hundreds of billions annually and don’t face the rollover bankruptcy risks that traditional businesses or governments encounter in high-interest-rate environments, where they frequently need to refinance debt. On top of that, going long on long-term government bonds as a hedge has been proven ineffective in this cycle, as long-term bonds have been crashing in sync with risk assets due to worsening fiscal deficit expectations, losing their hedging effect. In the current inflationary environment, the Mag 7 can easily leverage their strong pricing power to perfectly pass inflation costs onto global consumers. With high dividend yields, inflation protection, and unlimited buyback support, it’s easy to understand why capital is flowing into the Mag 7 right now. This is almost identical to the strategy of accumulating $BTC during the crypto bear market and holding for the long term.