TLDR:
Analysts are recommending safe defensive stocks over AI plays as the economy shows signs of cooling and market volatility increases. With the AI trade facing challenges and economic uncertainty, investing in defensive sectors like utilities and real estate may offer better returns.
Key Elements:
- Defensive stocks gaining favor on Wall Street as AI trade shows signs of being overextended
- Utility stocks performing well alongside tech sector
- Analysts advising investors to seek shelter in defensive corners of the market
- Market volatility expected to rise, leading to a shift towards safer investments
- Concerns over AI sector’s performance and returns on investment
As the AI trade takes a breather and the economy shows signs of weakness, analysts are touting the benefits of investing in safe defensive stocks. With utility stocks performing well compared to the tech sector, investors may find better returns in non-tech growth companies. As market volatility increases and economic conditions change, shifting towards defensive sectors like utilities and real estate could offer more stable investments.