Yahoo Finance·2025-10-03 09:58Group 1 - The Bank of America Corp. strategists recommend investors combine AI stocks with cheaper economy-linked stocks, particularly in commodities, to capitalize on the AI frenzy [1][2] - The development of AI data centers is increasing demand for energy and commodities, especially copper, which is essential for various applications including electric vehicles [2] - The UK market provides exposure to defensive sectors, such as healthcare, which can mitigate risks associated with potential overvaluation in technology stocks [3] Group 2 - The strategists observe "frothy" market conditions characterized by price action, valuations, and speculation, while noting that inflation indicators are rising [4] - Despite the high investor interest in AI stocks, with a BofA basket of AI leaders surging over 450% since the start of 2023, no central bank has raised interest rates in the last two months [5]