**[Bank of America: Shift from Risk Assets to Defensive Positions This Summer, Focus on Long-Duration Bonds, High-Dividend Stocks, and the U.S. Dollar]** BlockBeats News, July 19 — Bank of America’s Chief Investment Strategist Michael Hartnett issued a new warning, stating that the bank’s proprietary "Bull & Bear Indicator" has surged to an extreme historical level of 9.6. The latest fund manager survey reveals that current investor optimism is built on four core assumptions: no hard economic landing, no Federal Reserve rate hikes, no cuts in AI capital expenditures, and no Democratic sweep in the midterm elections. Hartnett refers to this combination as "no landing, no hike, no cut, no sweep," which he identifies as the fundamental reason for the near absence of market bears. Recent fund flow data further confirms the market’s extreme exuberance: U.S. equity assets saw a net inflow of $55.8 billion, while money market funds recorded a massive net outflow of $119.6 billion—the largest weekly cash withdrawal since April 2026. The technology sector accumulated $48.8 billion in inflows over three weeks, setting a historical record. Hartnett describes this as an institutional-driven, reckless momentum chase. Hartnett advises decisively exiting risk assets this summer and shifting focus to long-duration bonds, defensive sectors, high-dividend stocks, and the U.S. dollar. He identifies the U.S. equity giant ETF MAGS as a key observation indicator: if MAGS falls below $65, it will pressure cyclical sectors across the board; if it breaks above $70, it will signal a re-entry point. The greatest tail risk lies in the scenario where mega-cap tech companies announce cuts to AI capital expenditures, and this move fails to push the Mag7 to new highs. Such developments could trigger significant negative impacts on growth and asset prices, catalyzing large-scale shorting of banks, brokers, and industrial stocks. [Original Link]