The manager of a top-2% fund shares 3 defensive stocks he's betting on with the S&P 500 poised for 'material downside'
NYSE GQG Partners warns the AI trade is a bubble, posing risks to the S&P 500's stability. Siddharth Jain highlighted high valuations and risky capex levels in the AI sector. GQG's focus has shifted to defensive stocks like Progressive, Philip Morris, and AEP. GQG Partners has been vocal about its view on the AI trade over the last several months, publishing a four-part report from September through early March detailing why it's a bubble "on steroids" waiting to burst. In a call with Business Insider this week, the firm doubled down on its views, warning that the S&P 500 could get wrapped up in a selling-spiral if the AI trade starts to unravel. "The downside risk could be quite material," said Siddharth Jain, who co-manages the GQG Partners Global Quality Equity Fund ( GQRPX ), which Morningstar data shows has beaten 98% of similar funds over the last five years. "The moment AI capex even slows down — forget about contracting...
