The “risky trinity” is making Wall Street’s hottest trades start to look like one big crowded bet. Leuthold Group warns that the AI boom, bitcoin, and private credit have become tightly linked, calling it “the biggest underappreciated risk in the market.” Senior analyst Chun Wang says that overlap could trigger “big corrections, even crashes” across multiple assets, because investors are all exposed to the same underlying risk.

• Bitcoin miners are repurposing data centers for AI, funding the shift with private credit and using bitcoin as collateral — meaning a crypto selloff could snowball fast.
• Leuthold has moved to a ~20% underweight in tech and comms, rotating into banks like JPMorganJPM
  and Morgan StanleyMS
  , which tend to benefit from a steeper yield curve.

Strategic repositioning: Leuthold is leaning into real diversifiers. The team holds a ~10% overweight in healthcare, arguing that policy risk is already priced into biotech and pharma stocks. They’re also sticking with precious metals and gold miners as hedges, while favoring AI’s “picks-and-shovels” like JabilJBL

and TE ConnectivityTEL

over crowded semi-equipment names. After the S&P 500’s rare third straight year of 15%+ gains, the team is bracing for higher volatility ahead.