Business & Finance
BofA’s Raedler Says Defensives Ready to Roar if AI Trade Falters
Key Points
BofA’s Raedler Says Defensives Ready to Roar if AI Trade Falters Investors should switch their focus to defensive sectors if the artificial intelligence trade starts to unravel, according to Sebastian Raedler, head of European equity strategy at Bank of America Corp. Raedler questioned whether AI will ever become a high-margin business capable of justifying its hefty capital expenditure. He suggested investors should look at “left-behind” sectors such as consumer staples and pharma, where...
BofA’s Raedler Says Defensives Ready to Roar if AI Trade Falters
Investors should switch their focus to defensive sectors if the artificial intelligence trade starts to unravel, according to Sebastian Raedler, head of European equity strategy at Bank of America Corp.
Raedler questioned whether AI will ever become a high-margin business capable of justifying its hefty capital expenditure. He suggested investors should look at “left-behind” sectors such as consumer staples and pharma, where underlying business logic still functions well, to protect themselves from downside risk.
[Image text:] 10
30
7364
7.395.0
362