Bank of America warns that market hedging may continue until mid November, with three major risks still unresolved On October 23, Michael Hartnett, a strategist of Bank of America, said in the latest customer report that the current risk aversion in the global market may continue to the middle of November. Until the three uncertainties of AI financing risk, pressure on the French bond market and the mid-term elections in the United States were alleviated, he remained tactically cautious about risky assets. On the financial front, although investors have started to shift towards defense, their positions in technology stocks are still crowded. According to EPFR Global data, technology stock funds recorded the largest inflow of funds since July in the past week, and the October fund manager survey by Bank of America also showed that global investors' allocation to technology stocks has risen to the highest level since August 2020. Hartnett believes that if the credit spreads related to AI super cloud vendors peak, it may become an important signal of improved risk appetite. In addition, he also paid attention to the changes in the yield of French 10-year treasury bond bonds and the Franco German interest margin, as well as the policy uncertainty brought about by the mid-term elections in the United States on November 3. Hartnett believes that the market may still maintain a defensive pattern in the short term until the risk repricing mentioned above is completed.