AI
October saw a 0.9% decline in the S&P 500, dragged lower by Communication Services (-15.1%) and Information Technology (-6.8%). All other sectors delivered positive returns, led by traditional defensives – Health Care (+9.9%), Utilities (+10.2%), Consumer Staples (+11.6%) – and Energy (+14.0%). Although our overweight Tech call surrendered some performance during the month, IT has still gained 37% since the view was initiated on March 30, outpacing the S&P 500’s 20% advance.
Today's report examines several of the most interesting ideas we've heard over two weeks of meetings and calls with investors.
Marking the debut of Chief Technology and Innovation Strategist Matt Dyson, this month’s Global Market Outlook examines Matt’s views on the presence and durability of moats for companies at various segments of the AI chain.
Since ChatGPT’s launch in late 2022, multiple waves of AI innovation have driven markets and dominated the conversation across the investment community. Drawing on an extensive set of questions from BCA clients and strategists, our new report tackles the uncertainties that remain: What beyond customer demand drives token consumption? Will open-weight models eventually dominate? And, perhaps most importantly, how worried should we be about AI-induced extinction?
