Dutch International: Investors fleeing the turmoil of artificial intelligence may turn to Euro bonds.
Dutch international bank said that European government bonds may be attractive to investors seeking to avoid the stock market volatility caused by the development of artificial intelligence in the United States. Michel Tuck, senior European interest rate strategist at the bank, stated that as volatility in the US stock market increases, the Eurozone bond market has remained relatively stable, providing attractive yields relative to risk. The so-called "artificial intelligence panic trading" has erupted again this week, as concerns about the technology potentially disrupting business models have caused stocks of delivery and software companies to fall. In this environment, even seemingly insignificant announcements and product releases can lead to drastic fluctuations in individual stocks. Tuck stated that the market tension related to artificial intelligence is unlikely to be eased overnight. The relative volatility of the US stock market compared to Eurozone government bonds is making bonds appear increasingly attractive.
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