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

“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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