The QTR's Fringe Finance author argues the AI bubble could begin to unravel within six to ten months, with capital starting to rotate from speculative growth and tech stocks toward established businesses with reliable cash flows, reasonable valuations and attractive dividends. Verizon (VZ) and AT&T (T) have ducked the S&P's decline in recent weeks, though the author notes this could change before year-end and a couple of weeks does not establish a trend. Cybersecurity stocks are outperforming tech, while nuclear energy has pulled back with the broader market. The author says he is increasingly inclined to position more defensively for 2027, emphasizing valuation, free cash flow and strong balance sheets.
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