Stay risk-off as higher real yields and AI volatility threaten stocks: BofA

Investing.com -- Bank of America strategists say they "continue to lean risk-off" for the next three to four weeks, citing 3% real yields, geopolitical risks, midterm uncertainty, and weak price action in AI-linked stocks. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » Strategists led by Michael Hartnett said the Fed needs to hike on Oct. 28 and flagged oil and the U.S., Iran, Russia, and Ukraine situations as key risks, as well as the rising chance of a "wave-like" Democratic sweep in the midterms. On the AI front, the strategists said spenders and lenders are under pressure.