Published on October 22, 2026

Weekly Strategy Perspectives: Reassessing the AI Trade: Beanie Baby or Birkin bag?

Recent market volatility is testing investor confidence in the AI trade, raising questions about whether its powerful run is sustainable or showing signs of a bubble. The authors examine key signals to assess what may lie ahead.

Written by Carol Schleif, CFA, SASB-FSA

Weekly Strategy Perspectives: Reassessing the AI Trade: Beanie Baby or Birkin bag?

“Fashions fade. Style is eternal.”
— Yves Saint Laurent, legendary French luxe fashion designer

The Through Line: Recently heightened volatility is prompting investors to question the durability of the AI trade, which has undergirded a significant portion of market and economic activity over the past four years. Is it a fad waiting to crash (like the Beanie Baby pop culture craze of the late 1990s), or is it a sustainable trend that has more room to run (like the wait-listed Hermès Birkin bag, a global symbol of exclusivity)? We outline the issues and clues they hold for the path forward.

Click to read: Weekly Strategy Perspectives: Reassessing the AI Trade: Beanie Baby or Birkin bag?