Wall Street consensus trading fails, AI panic triggers market fluctuations

MarsBitNews · 2026-02-14T00:46:11+00:00

Wall Street investors' cash reserves hit a historic low in 2026, traditional consensus trades failed, and AI poses a threat to light-asset companies. Market volatility has intensified, with energy and consumer goods performing strongly. Investors lack downside protection, and analysts warn of potential market pressures.

MarsBitNews

2026-02-14 00:46:11

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Mars Finance reports that, according to Bloomberg, by 2026, Wall Street investors generally held record-low cash reserves and minimized hedging. However, six weeks later, multiple consensus trades have already failed. AI has shifted from a “sure-win” trade to a market threat, not to companies developing AI, but to light-asset firms that could be replaced by AI, such as software companies, wealth managers, and tax consultants. Market volatility has intensified, and asset correlations have increased. Surprisingly, sectors that were not favored earlier in the year, such as energy, consumer staples, and government bonds, have outperformed the market. A Bank of America survey shows that investor cash holdings have hit a historic low of 3.2%, with nearly half of fund managers lacking any downside protection measures. Analysts warn that beneath the surface of calmness, there is significant pressure that could trigger more volatility shocks.

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