According to the latest Markets Pulse survey, the momentum behind the artificial intelligence rally is showing signs of fatigue. As doubts regarding the immediate profitability and sustainability of AI-driven growth intensify, market participants are increasingly diversifying their portfolios.
A Return to Defensive Positions
The survey indicates a notable shift in sentiment, with a growing number of investors eyeing 'old-guard' or old-economy stocks. These traditional sectors, often characterized by stable earnings and established business models, are being viewed as safer havens compared to the high-volatility tech valuations seen over the past year.
While AI remains a long-term transformative force, the current cooling period reflects a broader market re-evaluation of how quickly these technologies will translate into bottom-line results for major corporations.
