The AI stock plunge is just warming up: Citi strategist

AI might still be dominating financial headlines, but investors should take heed when too much of the narrative for these stocks is focused on euphoria and explosive growth potential.

At least that’s according to Drew Pettit, the director of US equity strategy for Citigroup.

Pettit — who warned about an AI stock pullback in early July — says fairly simple warning signs for investors include “when [a stock’s] price moves very, very, very fast.”

Another is when it seems like most shareholders aren’t truly in the know, essentially buying stocks because they fear missing out on gains.

 

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