The Everything Trade

AllianceBernstein

Inigo Fraser Jenkins

Research

24 Pages

AllianceBernstein examines how AI’s demand for capital is linking asset classes and making diversification harder across a portfolio. Inigo Fraser Jenkins stays positive on equities and the US yet warns that the dollar and investment-grade credit may prove less defensive in an AI selloff. He favors value, healthcare, energy, gold and possibly the yen as offsetting trades.

Key Takeaways

Diversification Breaks Down: AI's capital demands increase cross-asset linkages, so the dollar and credit may no longer cushion an equity selloff the way investors expect.
Credit Concentration Rising: Technology was 2.7% of the US investment-grade market in 2025 and is on track to reach 8.8% by 2030.
Buybacks Near Balance: Extra AI-driven equity issuance could bring buybacks and issuance close to balance, removing corporations as the most consistent buyer of US stocks.
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