Two powerful forces are shaping financial markets: rising energy prices and growing uncertainty surrounding artificial intelligence.
With Brent crude above $116, Hedgeye expects inflation to accelerate, potentially keeping interest rates elevated. Higher energy costs also threaten economic growth, particularly in countries already experiencing slowing economies.
Meanwhile, the AI investment boom faces conflicting signals. Anthropic's reported financial progress has renewed enthusiasm, but Hedgeye identifies deteriorating trends across 32 of 35 AI-related stocks.
The concern is increasingly about financing. AI companies are committing enormous amounts of capital to infrastructure, often relying on borrowing and interconnected financial arrangements. Higher interest rates make those commitments more expensive.
Think Further
The opportunity in AI remains substantial, but technological success doesn't guarantee investment success.
For investors, rising oil prices, expensive borrowing and concentrated AI exposure create a potentially challenging combination.
Our focus remains capital preservation, diversification and disciplined risk management—not predicting when markets will turn.
Sources: Hedgeye Risk Management; Ayesha Tariq, CFA, MacroVisor, October 27, 2026.
Disclaimer: For informational purposes only. Not investment advice or a recommendation to buy or sell securities. All investments involve risk.
The table below reflects trend signals published by Hedgeye Risk Management as of October 15, 2026.
These signals are one input among many considered by our investment team and may not align with positioning in any client portfolio. Individual securities and commodities referenced may not be suitable for any particular investor. Clients should not act on this information without consulting their portfolio manager.
Tactical Trend Changes📈
Technical trends are analytical observations and do not guarantee future results
Technology…………Bullish to Bearish
Long term Bonds…Neutral to Bullish
Volatility Index……Neutral to Bullish
Bitcoin………………Bullish to Bearish
Bullish: a view that the price of a security or market may rise, subject to significant uncertainty and risk of loss. Bearish: a view that the price may fall, subject to significant uncertainty and risk of loss. Neutral: a view that the price may remain relatively stable. These terms reflect third-party and/or general market views and are not recommendations or predictions.