Published on June 26, 2026

Weekly Strategy Perspectives - Musings on the State of the AI Trade

With geopolitical tensions easing and oil flows stabilizing through the Strait of Hormuz, investor focus has swiftly shifted back to AI—though ongoing market strength is prompting heightened scrutiny and debate around the trade’s long-term sustainability.

Written by Carol Schleif, CFA, SASB-FSA

Weekly Strategy Perspectives - Musings on the State of the AI Trade

"Fear is a more dominant force in human behavior than euphoria – I would never have
expected that or given a moment’s thought before, but it shows up in the data in so many ways.”

― Alan Greenspan, Chairman of the U.S. Federal Reserve from 1987 to 2006

The Through Line: Attention has quickly reverted to “all things AI” now that oil is once again flowing through the Strait of Hormuz and a path toward stabilization of the Mideast conflict is in sight. More specifically, investors – spooked and nervous over the market’s strong year-to-date performance – seem set on finding ways to poke holes in the trade’s sustainability. We highlight a handful of the debates, providing perspective on the loudest and most alarmist commentary.

Click to read: Weekly Strategy Perspectives - Musings on the State of the AI Trade