Higher interest rates basically mean that asset prices will crash, at least in real terms. The value of an asset is the discounted value of all future cash flo

Higher interest rates basically mean that asset prices will crash, at least in real terms. The value of an asset is the discounted value of all future cash flows; as the discount rate goes up, the value goes down, particularly for assets (like AI stocks) where the cash flows are far in the future. Unfortunately the right asset to hold depends on why rates are going up. If you believe that rates are going up because we're in for high inflation rates ahead and so bondholders need to be compensated for expected face-value depreciation, then you should buy hard assets (gold, oil, Bitcoin) or stocks that generate a lot of cash now (utilities, FANGs, commodity producers like oil companies). But if you believe that rates are going up because the Fed is going to hike rates and get inflation under control, the right asset to hold is cash. Every other asset will lose value as rates go up and cash becomes scarce, and then you can pick them up cheap when we get the inevitable steep recession.