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Globalt Investments senior portfolio manager Keith Buchanan joins Catalysts to discuss market dynamics, as markets (^DJI, ^IXIC, ^GSPC) work to recover from Monday's downturn, which was triggered by Chinese artificial intelligence (AI) startup DeepSeek.
"As we've been inching out of large-cap growth ... the dislocation has really been the most concerning part," Buchanan tells Yahoo Finance. He emphasizes that "names that have been levered to the AI trade" are "vulnerable" to market "shocks" due to their high valuations — particularly when it comes to supply and demand dynamics.
"We saw both of those kind of collapse yesterday with DeepSeek. We didn't anticipate that particularly, but it felt like that vulnerability presented a risk," he explains.
Additionally, with earnings season now in progress, Buchanan stresses that earnings results are "critical" to determining the trajectory of stocks throughout 2025.
For a deeper understanding of his perspective, especially regarding the technology sector, viewers can watch the full video above.
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This post was written by Angel Smith