Exposure to other sectors besides AI is really important, says DCLA's Sarat Sethi

Exposure to other sectors besides AI is really important, says DCLA's Sarat Sethi

Sarat Sethi, DCLA managing partner and portfolio manager, joins 'Squawk Box' to discuss the latest market trends, state of the AI trade, where investors can find opportunity, what to make of the recent volatility, and more.

Investors Losing Faith in the AI Trade

The defensive rotation continues… For the second week running, the top performing sector was health care, which is today the most reliably defensive of all sectors. (Utilities used to hold that distinction, but the sector has become wrapped into the AI trade due to the massive amount of power needed to run AI datacenters.) The SPDR Health Care Sector ETF (XLV) returned a very solid 1.8% last week, followed by consumer staples (XLP) at 0.8%. XLP …