Tech Retreat Sparks Cautious Optimism as Wealth Clients Seek Shelter in Structured Products
The S&P 500's 4.4% November slump—its worst since 2008—has triggered a broad reassessment of AI-related stocks. Nvidia, once the darling of the AI boom, tumbled 11% this month despite strong earnings. Microsoft and Amazon followed suit amid downgrades and valuation concerns.
Citi Wealth’s Andy Sieg reports record inflows from high-net-worth clients pivoting to structured notes. "They’re hedging downside while maintaining exposure," he says, noting the bull market retains legs as investors avoid panic selling. The Nasdaq’s 1.2% drop on November 19 underscores the sector’s fragility.