Reported 10 months ago
Steve Sosnick, chief strategist at Interactive Brokers, suggests investing in the Real Estate Select Sector (XLRE) ETF due to its interest rate sensitivity and diverse coverage from offices to data centers. On the other hand, he warns against piling into utilities (XLU) as an AI play, explaining that while the sector's rate structure is fixed, the high costs and longer infrastructure building time may not lead to immediate payoffs. Sosnick advises holding existing utilities investments but refraining from buying more in the current AI-driven market trend.
Source: YAHOO