From Yahoo Finance: 2025-05-30 21:34:00

Bank of America warns that Trump administration policies may lead to a market bubble with lower taxes, tariffs, and interest rates. The “big beautiful bill” seeks to lower taxes while Trump pushes for trade deals and lower rates. This could prompt a shift from bonds to crypto and AI, fueling speculation.

The 30-year Treasury reaches its highest level since 2008 amid fears over the GOP budget bill impacting the US deficit. Bank of America predicts a rotation out of bonds into AI and tech stocks, with potential gains of 30% for select groups. Low-quality stocks have outperformed the broader market recently.

Crypto markets have surged in recent weeks, with Bitcoin hitting all-time highs above $112,000. Investor sentiment has turned to risk-on, with speculative gains in stocks and crypto. Bank of America’s caution about a potential market bubble underpins the current speculative trend.



Read more at Yahoo Finance: Trump’s policies risk inflating a new market bubble, BofA says