Where Can Investors Hide?
AI was a tailwind. Now, it's the ultimate headwind.
The world is changing quickly.
Companies that seemed irreplaceable are now seeing “competitors” spun up in hours, a Monday afternoon Anthropic headline is sending companies down 10%, and coveted white collar jobs that seemed like safe havens are close to being automated.
AI was once the ultimate market tailwind for many technology stocks. In a matter of weeks it’s turned into the ultimate headwind for those same companies.
Humans will always have an appetite for new technology, it’s in our blood to evolve and advance as a society. But has the technology humans created ever been made to replace us? That is the fear spreading through the market.
Just yesterday we saw multi decade technology behemoth IBM get shot down 13% because of Anthropic’s latest AI developments, it’s worst day in over a decade. Last week it was Crowdstrike, down almost 20% over the last few days. Not only is software getting hit, but the services economy is as well. Companies like Uber and DoorDash are even getting caught in the mess as market participants weigh whether or not these apps can be “vibe coded.”
The market is pricing in the AI tornado. It’s very clear something is changing, and investors are left asking one question.
“Where can I hide?”
At this stage of the game, anyone who owns stocks feels like they’re one headline away from seeing one of their holdings down 10% or more due to the looming AI threat lurking in the shadows.
It feels like AI has become a tornado, sweeping through the market and picking up anything in its path it deems exposed. Fundamentals matter less than perception in the short term, and right now perception assumes disruption is inevitable unless proven otherwise.
There are only a select few pockets of the market I would consider as “safe havens.” Groups of stocks that AI can’t replicate, disrupt, or destroy are becoming harder to find as the selling begins to spread.
But what are those groups? Where is there to hide? In the remainder of this article I’m going to discuss which pockets of the market I think are completely insulated from the AI tornado. Not groups or stocks that are borderline insulated. groups that I consider completely immune to any AI disruption or Anthropic headlines.
Technology stocks included.