the flow show -To Xi, or not to Xi

Trading ideas and investment strategies discussed herein may give rise to significant risk and are not suitable for all investors. Investors should have experience in relevant markets and the financial resources to absorb any losses arising from applying these ideas or strategies. >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules. Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions. BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Refer to important disclosures on page 10 to 12. 12747712 The Flow Show To Xi, or not to Xi Scores on the Doors: gold 26.5%, stocks 18.6%, crypto 12.1%, HY bonds 7.8%, commods 7.6%, oil 5.9%, cash 4.2%, IG bonds 3.8%, US$ 1.6%, govt bonds -0.6% YTD. Zeitgeist I: "Gotta believe after setting up a fund so retail can borrow from the state to invest in stocks China government ain't gonna come up short on stimulus this weekend". Zeitgeist II: "A bull market that began at 666 in March '09 ending with a blowoff top to 6666 as Fed slashes yields of $6.5tn in money market funds…just feels so right". The Biggest Picture: record week of inflows to China stocks, record inflows to EM equities, record week of BofA private client T-bill selling (Chart 2)…investors all aboard the risk train on Fed cuts and reversal of ABC "Anywhere but China" trade; BofA Bull & Bear Indicator surges from 6.0 to 7.0, heading once again toward "sell signal" of 8.0. The Price is Right: traders chasing China stocks but allocators skeptical of big inflection point, especially ahead of US election; we buy any China dips as policy makers saying capital markets to be used aggressively to boost domestic animal spirits & demand, and expect China GDP upgrades from 4.6% (Chart 4), China bond yields up from 2% floor, to spur asset allocation into China. Tale of the Tape: ABB “Anything but Bonds” trade ("long monopolies, short leverage") alive and well in ongoing relative downtrends in small cap, regional banks…; we say 30-year remains best hedge as hard landing fears evaporate; note rates, penetration & regulation always triggers to end a tech bull and investors all-in as rates peak, AI low penetration…but anti-trust narrative likely to deepen given low regulation and taxation of tech sector…"Magnificent 7" paid US government $80bn in taxes past 12 months, just 0.5% of the $16tn market cap of the "Magnificent 7" stocks. Chart 2: Record BofA private client weekly outflow from T-bills BofA private client T-bill flows ($bn) Source: BofA Global Investment Strategy BofA GLOBAL