IPOs
Our clients expect to fund AI mega-IPOs exposure by selling today’s listed AI winners. In last week’s poll, 71% of clients said they expect to fund purchases of the coming mega-IPOs by rotating out of Tech, well ahead of reallocating from bonds (18%) or…
The coming IPO wave is more likely to test the scarcity premium in AI leaders than to mark a broader market top. Our Chart Of The Week comes from Noah Weisberger, Chief US Equity Strategist. In the context of the SpaceX IPO, Noah looked at decades of IPO…
Our US Equity strategists expect a meaningful pickup in IPO activity and caution that a new issuance wave could weigh on future market returns and multiple expansion. Strong equity performance, easier financial conditions, expanding valuations, and a firmer…
Based on 40 years of history and some 12,000 IPOs, the evidence suggests that the coming IPO wave may dampen forward market returns, mute further multiple expansion, and possibly interrupt sector trends. That said, even monster-sized IPOs are unlikely to trigger a sustained bear market: only about 20% of mega-IPOs coincide with market peaks. The bigger risk is AI leadership rotation as new listings dilute scarcity premia in existing winners.