Core Viewpoint - Bank of America indicates a significant shift in market dynamics, suggesting that the traditional safe-haven role of bonds has failed, leading to a re-evaluation of investment strategies [1][4]. Group 1: Bond Market Analysis - The chief equity strategist at Bank of America, Michael Hartnett, describes the first half of the 2020s as a period of "bond-market humiliation," with long-duration government bonds experiencing unprecedented losses [1][5]. - The iShares 20+ Year Treasury Bond ETF, representing long-duration bonds, lost 31% in 2022, marking one of its worst years, with a maximum drawdown of nearly -47.8% from its peak in 2020 through late 2025 [2]. Group 2: Investment Shifts - Hartnett anticipates that the latter half of the decade will favor international stocks, emerging markets, commodities, and gold, driven by a weaker dollar and overseas reflation [3][5]. - The U.S. Dollar Index has decreased by 9% over the past year and nearly 2% in the last five days, indicating a trend that may benefit international investments [6]. Group 3: Market Leadership Changes - Bank of America warns that the traditional market playbook is failing, suggesting that investors need to adapt to a new foundation for their portfolios as bonds lose their safe-haven status [4]. - The focus may shift from AI stocks, which have dominated attention recently, to small- and mid-cap stocks due to trends in reshoring and industrial rebuilding [3].