Making Financial Headlines · Page 1
HSBC Strategist Finds AI's Finish Line Has Wheels
· New York time
Maxx Kettner, HSBC's chief multiasset strategist, has warned retail investors chasing the AI rally that the goal posts in AI investing keep moving, according to MarketWatch. His caution concerns a market where the criteria for the next attractive opportunity can change along with the technology and the investment narrative. Yesterday's indispensable business may discover that indispensability has received a software update. That is a warning about assessment, not a declaration that every AI investment will fail. A growing industry and an attractive investment at a particular price are different propositions. Expectations about future growth can change even while companies continue developing products. The spreadsheet must somehow accommodate both engineering progress and the financial community's habit of discovering a new favorite noun every week. For individual investors, the practical issue is understanding what a valuation assumes and whether those assumptions still describe the business being purchased. Kettner's moving-goal-post observation captures the difficulty without supplying a guaranteed market timetable. There is no fixed appointment for enthusiasm to become earnings. The AI rally has instead installed a reception desk that keeps announcing that the destination has moved upstairs, and that the upstairs is still under construction.
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