This top strategist has a warning for retail investors chasing the AI rally
Published . Updated .
Max Kettner, HSBC’s chief multiasset strategist, says the investors need to understand the goal posts are constantly moving with AI investing.
Directly affected
- No company is named in this report.
Indirectly affected
- LMT Lockheed Martin+4.2%
Defense contractors get more work when conflict spending rises
- RTX RTX
Defense contractors get more work when conflict spending rises
- NOC Northrop Grumman+2.8%
Defense contractors get more work when conflict spending rises
- GD General Dynamics-3.4%
Defense contractors get more work when conflict spending rises
- ITA iShares U.S. Aerospace & Defense-5.8%
A fund of aerospace and defense companies
- BA Boeing-6.2%
Defense and aerospace orders move with conflict spending
- LHX L3Harris-0.6%
Defense contractors get more work when conflict spending rises
- HII Huntington Ingalls
Shipyards benefit when naval spending rises
Price reaction, T-5 to T+3
| Ticker | T-5 | T-3 | T-1 | T0 | T+1 | T+2 | T+3 |
|---|---|---|---|---|---|---|---|
| LMT | -3.46% | -0.65% | base | +6.92% | after close | after close | after close |
| RTX | -2.43% | +0.25% | base | +1.56% | after close | after close | after close |
| NOC | -7.50% | -5.40% | base | +2.35% | after close | after close | after close |
| GD | -2.28% | -1.02% | base | +1.71% | after close | after close | after close |
| ITA | +0.57% | +0.95% | base | -0.62% | after close | after close | after close |
| BA | -1.84% | -0.47% | base | -2.47% | after close | after close | after close |
| LHX | -2.92% | -1.56% | base | +2.60% | after close | after close | after close |
| HII | -2.50% | -1.68% | base | +1.75% | after close | after close | after close |
Closing-price change versus T-1, the last close before the story. T0 to T+3 fill in after each market close. Prices: Alpaca IEX.
Market Call
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Max Kettner, HSBC’s chief multiasset strategist, says the investors need to understand the goal posts are constantly moving with AI investing.
Source: MarketWatch
Defense
| Company | When | Move | Status |
|---|---|---|---|
| BA | that day | -2.47% | final price |
| BA | three days earlier | -0.47% | final price |
| BA | five days earlier | -1.84% | final price |
| GD | that day | +1.71% | final price |
| GD | three days earlier | -1.02% | final price |
| GD | five days earlier | -2.28% | final price |
| HII | that day | +1.75% | final price |
| HII | three days earlier | -1.68% | final price |
| HII | five days earlier | -2.50% | final price |
| ITA | that day | -0.62% | final price |
| ITA | three days earlier | +0.95% | final price |
| ITA | five days earlier | +0.57% | final price |
| LHX | that day | +2.60% | final price |
| LHX | three days earlier | -1.56% | final price |
| LHX | five days earlier | -2.92% | final price |
| LMT | that day | +6.92% | final price |
| LMT | three days earlier | -0.65% | final price |
| LMT | five days earlier | -3.46% | final price |
| NOC | that day | +2.35% | final price |
| NOC | three days earlier | -5.40% | final price |
| NOC | five days earlier | -7.50% | final price |
| RTX | that day | +1.56% | final price |
| RTX | three days earlier | +0.25% | final price |
| RTX | five days earlier | -2.43% | final price |
Congressional trades in the stocks in this story
- Rep. Kevin Hern sold Lockheed Martin (LMT) (jointly held), worth $15,001 - $50,000 on 23 Sep 2026. That is 29 days before publication. Filed 13 Oct 2026. View the filing.
- Rep. Kevin Hern sold Lockheed Martin (LMT) (jointly held), worth $15,001 - $50,000 on 23 Sep 2026. That is 29 days before publication. Filed 13 Oct 2026. View the filing.
- Rep. Kevin Hern sold Lockheed Martin (LMT) (jointly held), worth $15,001 - $50,000 on 17 Sep 2026. That is 35 days before publication. Filed 13 Oct 2026. View the filing.
- Rep. Maria Elvira Salazar sold Boeing (BA), worth $1,001 - $15,000 on 24 Sep 2026. That is 28 days before publication. Filed 7 Oct 2026. View the filing.
- Rep. Kevin Hern sold Boeing (BA) (jointly held), worth $1,001 - $15,000 on 13 Aug 2026. That is 70 days before publication. Filed 1 Sep 2026. View the filing.
- Rep. Kevin Hern sold Boeing (BA) (jointly held), worth $15,001 - $50,000 on 13 Aug 2026. That is 70 days before publication. Filed 1 Sep 2026. View the filing.
- Rep. Richard Dean McCormick sold L3Harris Technologies (LHX), worth $1,001 - $15,000 on 30 Jul 2026. That is 84 days before publication. Filed 14 Aug 2026. View the filing.
Public disclosure filings, not a recommendation. The filing link is the source document. News use of these reports still sits under 5 U.S.C. § 13107(c).
How solid the defense case looks
12 out of 100
“This top strategist has a warning for retail investors chasing the AI rally” scores 12 out of 100. The score uses 1 sources.