What does BloFin suggest instead of holding a standard S&P 500 fund?

It points to equal-weight funds such as the Invesco S&P 500 Equal Weight ETF (RSP), where each company gets about 0.2% weight at quarterly rebalancing, versus roughly 39% for the ten largest holdings in SPY.

How much can investors earn in Treasuries under this plan?

As of October 20, three-month US Treasury yields stood around 4.3% and ten-year yields above 5.1%, while inflation-protected Treasuries offered real yields approaching 3%.

Why does BloFin like Bitcoin for 2027?

It argues capital favored AI stocks over crypto for two years, leaving Bitcoin comparatively underowned, and expects growth as stablecoins, tokenized assets and AI agents drive adoption.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AI6m agoOct 22, 2026, 19:01 JST

BloFin Research: 3 Ways to Shield a Portfolio from a 2027 AI Bust

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3 Key Points

What happened
BloFin Research outlined three defensive moves for a potential 2027 AI correction: shift some S&P 500 exposure to equal-weight funds like RSP, take AI profits into Treasuries yielding up to 5%, and consider Bitcoin.
Why it matters
The plan aims to cut concentration risk while keeping exposure to future gains, and BloFin says investors should not try to short AI stocks as a hedge.

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Context & Analysis

The recommendation arrives at a moment when the AI trade is showing strain. Record infrastructure spending, rising borrowing costs and questions about profitability are raising bubble fears, and Ray Dalio recently warned that debt-funded AI expansion could be approaching a breaking point. The warning signs are not abstract: CoreWeave's bond yields surged toward 15% as investors questioned its debt burden, even as Nvidia and major technology companies continue generating substantial cash flow.

BloFin's answer is not to abandon AI but to dilute single-stock concentration. Its equal-weight fund suggestion is a direct response to how top-heavy standard index funds have become, while the Treasury option is framed as a way to realize AI gains without having to time the peak perfectly — though longer-term bonds face greater price losses if rates rise further.

The Bitcoin leg rests on a specific reading of the past two years: capital rotated into AI stocks and left crypto underowned, and BloFin thinks a new cycle is beginning from that base. It is careful to note that Bitcoin offers no guaranteed protection from an AI-driven market crash, and its central advice is to stay invested while reducing concentration risk and preparing for volatility.

FAQ

What does BloFin suggest instead of holding a standard S&P 500 fund?: It points to equal-weight funds such as the Invesco S&P 500 Equal Weight ETF (RSP), where each company gets about 0.2% weight at quarterly rebalancing, versus roughly 39% for the ten largest holdings in SPY.
How much can investors earn in Treasuries under this plan?: As of October 20, three-month US Treasury yields stood around 4.3% and ten-year yields above 5.1%, while inflation-protected Treasuries offered real yields approaching 3%.
Why does BloFin like Bitcoin for 2027?: It argues capital favored AI stocks over crypto for two years, leaving Bitcoin comparatively underowned, and expects growth as stablecoins, tokenized assets and AI agents drive adoption.

Yahoo Finance AIRead Original Article

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