BofA Identifies B.I.G. as Next Big Investing Theme of 2020s

BofA predicts the next big investing theme of the 2020s is B.I.G. (Bonds, International Stocks, and Gold), according to strategist Michael Hartnett. Hartnett notes that the previous three themes have been ABB (Anything but Bonds), ABC (Anywhere but China), and the Great Rotation (out of bonds into stocks). Hartnett believes that B.I.G. will be the next major investment theme due to rising bond yields and global economic uncertainty.

According to BofA strategist Michael Hartnett, the next major investment theme for the 2020s is B.I.G., encompassing Bonds, International Stocks, and Gold. Hartnett notes that the previous three themes have been ABB (Anything but Bonds), ABC (Anywhere but China), and the Great Rotation (out of bonds into stocks) The next big investing theme of the 2020s is B.I.G. - BofA^[1].

The shift towards B.I.G. is driven by several factors, including rising bond yields and global economic uncertainty. Hartnett suggests that long positions in BIG could serve as a barbell strategy to capitalize on the "AI bubble." He notes that bonds, such as those represented by the iShares Core U.S. Aggregate Bond ETF (AGG), are poised to benefit from peak nominal GDP growth and lower Treasury yields The next big investing theme of the 2020s is B.I.G. - BofA^[1].

International stocks, represented by the Vanguard FTSE Emerging Markets ETF (VWO), are expected to gain from a weaker dollar and the end of deflation in Europe and Japan. China tech stocks, via the Invesco QQQ (QQQ), are seen as a way to balance the U.S. AI bubble. Gold, represented by the SPDR Gold Shares ETF (GLD), is viewed as a hedge against geopolitical risks and dollar debasement The next big investing theme of the 2020s is B.I.G. - BofA^[1].

Additionally, Italy's lower bond yields have provided a significant fiscal windfall, with the government expecting to save up to €13 billion due to lower borrowing costs. This is attributed to fiscal discipline and political stability under Prime Minister Giorgia Meloni, which has boosted the public finances and narrowed Italy's risk gap with Germany Italy’s Lower Bond Yields Reap €13 Billion Windfall for Meloni^[2].

In conclusion, BofA's prediction of the B.I.G. theme highlights the potential opportunities in bonds, international stocks, and gold. Investors should consider these factors when making strategic decisions in the current market environment.