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Feb 18
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$332.18
$332.18
-0.0%
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LONG
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Michael Batnick
Managing Partner, Ritholtz Wealth Management
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Schwab stock dropped 10% on news that a competitor (Altruist) released an AI tax tool. The market's reaction suggests a fundamental misunderstanding of the industry. The idea that a single AI tax feature would dismantle the moats of massive custodians like Schwab, Raymond James, or LPL is "a joke." The sell-off is an irrational "recency bias" event where algorithms are selling on AI headlines without understanding the business durability. Continued algorithmic selling or genuine disruption in wealth management fees over the very long term. |
The Compound News
Is AI a Mistake? | Animal Spirits 452
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Feb 15
|
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$334.70
$332.18
-0.8%
|
N/A
|
Finnhub News
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— |
Finnhub - LPLA
LPL Financial: AI Selloff Is Your Opportunity
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Feb 11
|
|
$338.67
$332.18
-1.9%
|
LONG
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Robert Frank
Reporter
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Wealth management stocks dropped 7-9% after Altruist announced an AI tax planning tool, sparking fears that algorithms will replace human advisors. The sell-off is labeled an "overreaction." While AI will drive fee compression and consolidation, high-net-worth clients (the target demographic for these firms) still demand human judgment and relationship management. AI will likely reduce back-office costs rather than replace the core advisor role at the high end. Buy the dip on the overreaction; top firms adapting to AI will survive and consolidate. Continued fee compression and faster-than-expected AI adoption by low-cost competitors. |
CNBC
Squawk Pod: January’s jobs picture & AI disru...
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