Overvalued AI Sector Faces Correction as Undervalued REITs and Utilities Poised to Rebound
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AI and other "hot" sectors are overvalued and due for a correction, while beaten-down sectors like REITs and utilities look poised to recover.
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Practical applications of AI are still lacking compared to lofty expectations and valuations. Economic outlook worsening.
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REITs attractively valued and major investors see them as a "generational buy." Interest rates could decline.
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Utilities needed for electricity generation and grid upgrades. Have been acquisition targets. Rates decline would help.
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Infrastructure has massive tailwinds but needs rates relief. BIP and BEPC top picks for growth and yield.