Merryn Talks Money Markets Wrap: From YOLO to HALO
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Feb 26, 2026 Markets are rotating away from high-multiple AI and software names toward heavy-asset, low-obsolescence firms. The conversation explores triggers for the sell-off and why cheaper knowledge from AI makes pricey software less appealing. There is a focus on infrastructure, metals, servers and the risks of massive speculative capital spending amid higher interest rates.
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Markets Shift From YOLO To HALO
- Markets are rotating from high-multiple AI and software 'hope' stocks to HALO companies with heavy assets and low obsolescence.
- Merryn Somerset Webb cites JP Morgan's HALO theme and says investors now favour firms with existing infrastructure like mines and metals over speculative software bets.
AI Narrative Fueled Then Triggered The Selloff
- The AI narrative both boosted expensive software valuations and now helps justify their sell-off when expectations change.
- John Stepek references recent AI product releases and a speculative Citrini Research note that fed a sharp market pullback.
Reprice High PE Knowledge Stocks Now
- Reassess valuations of high-PE knowledge economy stocks and avoid overpaying for speculative future benefits.
- John Stepek points to UK names like Experian and LSE whose P/Es fell from high 30s–40s into the 20s after re-rating.