Negative-beta stocks, which rise when the S&P 500 falls, are maintaining surprising performance despite bond weakness. According to Evercore strategists, these securities offer a way to hedge against volatility for investors seeking protection from a potential unwinding of the artificial-intelligence trade. John Arnold, a renowned energy trader, has proposed a simple portfolio combining 50% technology and 50% energy, posting a 37% year-to-date return. This allocation allows investors to capture AI-related gains while reducing exposure to geopolitical tensions involving the United States or Iran.
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