Week of 22 - 26 June 2026 | AI’s reality check reinforces diversification 

In this edition of Amundi's Weekly Market Directions: 

• South Korea has experienced strong market swings in recent weeks, as the AI trade has come under pressure at a global level.  
• Markets are questioning whether AI’s high valuations are still justified as the interest-rate environment remains uncertain and IPO supply increases.
• As the AI theme comes under scrutiny, investors should stay cautious and continue to favour diversification* away from concentration risk.

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Monica Defend

Monica Defend

Head of Amundi Investment Institute

The AI trade is facing greater scrutiny as the path for rates remains uncertain and IPO supply rises, underscoring the case for diversification and selectivity.

Monica Defend, Head of Amundi Investment Institute

Read the full weekly market directions

* Diversification does not guarantee a profit or protect against a loss.

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 29 June 2026. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
 

Date of first use: 29 June 2026

Doc ID: 5662346