Looking at Bank of America's 《FLOW Show》 from last week, the timing is spot on. Hartnett believes that high interest rates have started to impact the internal structure of the market, and the midterm elections could further shift expectations around earnings, capital expenditures, and regulation. In this window, cash generates returns, so investors have the patience to wait. His recommendations are: 1) Be cautious about adding to crowded positions. 2) Within tech, relatively favor the Big Seven over semiconductors. 3) Start placing small bets on assets tied to peak yields, such as 30-year U.S. Treasuries, small-cap stocks, REITs, and Hong Kong real estate. 4) For longer-term plays, maintain a preference for gold, commodities, and emerging markets. **Personal take:** 1) I agree with Hartnett's reasoning for increasing defensive weight, especially when observing market breadth and credit changes together. I also discussed this last week here: https://(x.com)/qinbafrank/status/2109645190432772561?s=46&t=k6rimWsEbo2D2tXolYcM-A. The market is likely to remain quite unstable in the near term. Pre-CPI risk aversion, midterms, and industry concerns could all lead to adjustments at the slightest sign of turbulence. 2) However, I wouldn’t use “no rate cuts” as a direct condition to avoid adding positions. If earnings continue to revise upward, credit risks remain stable, and energy pressures ease, then even if policy rates stay unchanged for now, stocks could become attractive again.