Core Insights - The report emphasizes the integration of AI in asset allocation, enhancing the predictive capabilities of stock and bond performance through a dynamic weighting system [2][3] - The AI-driven model has successfully predicted market trends, including the recent performance of value stocks outperforming growth stocks in March and April [3] - Predictions for 2025 indicate that bond assets will maintain relative advantages, while stock market performance is expected to stabilize at the bottom in Q3 and slightly recover in Q4 [3] Asset Allocation Framework - The AI-enabled research system combines five major cycles to predict stock and bond performance, with a current high weighting of 55% on the monetary credit framework [2][3] - The allocation for domestic assets in July shows: 12.64% in equities, 3.58% in dividends, 76.45% in bonds, and 7.33% in gold, with adjustments compared to traditional risk parity models [4] - For overseas markets, the allocation includes: France 15.62%, Germany 14.85%, the US 20.24%, Japan 16.44%, Hong Kong 11.50%, and India 22.35%, with slight adjustments in France, Germany, and Hong Kong [4] Industry Rotation Strategy - The AI-driven industry rotation strategy has significantly improved performance metrics, achieving a 420% increase in the Sharpe ratio and a 41% reduction in maximum drawdown compared to traditional strategies [5] - The latest industry outlook for Q3 suggests overweight positions in machinery, comprehensive sectors, and electronics, while maintaining standard positions in automotive, communication, and construction, and underweighting banking and retail [5]