BofA’s Hartnett Recommends Resources, UK Stocks to Bet on AI

Bank of America strategist Michael Hartnett has recommended a portfolio strategy to capitalize on the growing AI trend. Hartnett suggests that investors should mix AI-related stocks with more affordable stocks linked to the broader economy, such as commodity shares. The rationale behind this approach is to balance the potential upside of AI-driven companies with the relative stability and value offered by economically-linked stocks. This diversified approach aims to provide investors with exposure to the transformative power of AI while mitigating the risk associated with investing solely in high-growth, AI-focused stocks. Hartnett specifically highlights the United Kingdom stock market as an attractive investment destination, as it offers relatively cheaper valuations compared to other major markets. Additionally, he recommends allocating a portion of the portfolio to resource-related stocks, which may benefit from the growing demand for commodities in the AI-driven economy.