Rathbones says AI investors shift focus to financing and returns
SPY•Rathbones said AI investment returns increasingly depend on financing costs, infrastructure use and revenue generation. In October, the equal-weighted S&P 500 rose around 5%, semiconductor shares fell around 15% and the headline index weakened slightly.
1. AI returns and risks
Rathbones’ November 6 investment update said AI investment returns increasingly depend on financing costs, infrastructure utilization and revenue generation, favoring companies with strong balance sheets and cash flows. It warned that disappointing returns could curb investment, widen credit spreads and weaken the broader economy.
2. Equities and bonds
The equal-weighted S&P 500 rose around 5% in October, while semiconductor shares fell around 15% and the headline index weakened slightly. Rathbones said higher yields have restored meaningful income from high-quality government bonds, but their portfolio protection depends on economic weakness rather than inflation shocks.
