BloFin Research advises investors on three strategies to prepare for potential AI stock correction by 2027

BloFin Research argues investors should prepare for a potential AI market correction heading into 2027, citing concerns over record infrastructure spending, rising borrowing costs, and questions about profitability, with Ray Dalio warning that debt-funded AI expansion could approach a breaking point. Recommended strategies include reducing dependence on Nvidia and other AI giants by shifting exposure toward equal-weight funds like Invesco S&P 500 Equal Weight ETF (RSP); taking AI profits to earn up to 5% in high US Treasury yields (e.g., ten-year yields above 5.1% as of October 20); and paying attention to the bond market and the cost of money, specifically Treasury yields and spreads.