Weekly Strategy Perspectives: Reassessing the AI Trade: Beanie Baby or Birkin bag?

Our views on investment strategy, given the events of the past week and their impact on equity and fixed income markets.

office buildings with superimposed line graph in front

“Fashions fade. Style is eternal.” – Yves Saint Laurent, legendary French luxe fashion designer

The Through Line: Recently heightened volatility is prompting investors to question the durability of the AI trade, which has undergirded a significant portion of market and economic activity over the past four years. Is it a fad waiting to crash (like the Beanie Baby pop culture craze of the late 1990s), or is it a sustainable trend that has more room to run (like the wait-listed Hermès Birkin bag, a global symbol of exclusivity)? We outline the issues and clues they hold for the path forward.

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