"Doug McIntyre: If you read the notes, everyone knew what they were going to say - the risk with AI, the data centers, circular financing. Will AI ever make any money, or will it just be a free, very nice toy? Is this the beginning of that? Do you think there are going to be other downgrades, not of companies, but of the sector?"
""I want to suggest that everybody who can hear the sound of our voices take a look at this," McIntyre says. "The market is unsteady now. I would suggest that everyone set triggers on every stock, ETF, or mutual fund they own. Decide now where you are a rational seller. If the market starts to slide, make up your mind now. When markets get volatile, people are not rational.""
UBS downgraded the entire technology sector, citing risks tied to AI, data centers, and circular financing. Mega-cap firms like Microsoft, Meta, and Alphabet are expected to remain long-term leaders, while smaller and cyclical tech companies face greater downside. Memory and storage firms such as Western Digital, SanDisk, and Micron benefited from supply constraints that may not persist. Healthcare and utilities present defensive alternatives, with healthcare providing meaningful dividends attractive to Gen X and Boomer investors. Prudent risk management—including stop losses, hedging, setting sell triggers, and taking profits—is advised to protect capital amid market uncertainty.
Read at 24/7 Wall St.
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