DeepSeek: Why REITs And Utilities Loved The News

2025-01-28 13:12:21 ET

Summary

• The market reacted strongly to the unveiling of China's AI, DeepSeek, with AI stocks plummeting and REITs and utilities trading up significantly.
• Investors are shifting towards predictable returns from REITs and regulated utilities, which offer 8%-10% expected returns, amid uncertainties surrounding AI's future profitability.
• The DeepSeek news has made the steady cashflows of REITs and utilities more attractive as the allure of AI's unbridled growth diminishes.

The news was everywhere, so I’m sure you already heard that the Chinese unveiled their newly developed AI, DeepSeek, which is presumably more efficient than ChatGPT and trained using fewer resources....

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