Tatton Asset Management says fading AI optimism drives shift from stocks to bonds
Bitget2026/10/16 16:13- Tatton Asset Management’s analysis linked the shift from stocks into government bonds primarily to weakening optimism about AI profit growth.
- Government bond yields fell sharply as expectations of a more hawkish Federal Reserve response to 3.7% US inflation dampened growth prospects.
- CoreWeave’s 5-year bond yield breached 15%, reaching distressed territory amid reports of slowing demand for AI computing power.
- A weaker dollar compounded US stock losses for UK investors, increasing the risk that prolonged currency volatility could prompt capital repatriation.
- Strong third-quarter earnings could ease AI concerns, though newly disclosed long-term lease obligations could expose greater debt burdens.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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