Oil breaking $100 is adding pr

Oil breaking $100 is adding pressure to tech already weak on AI capex fears. This rotation to defensives makes sense short term, Procter & Gamble, Coca-Cola, Walmart, Costco and Eli Lilly all showing safe haven bid. I think Berkshire Hathaway with $360B cash and buybacks is best positioned if selloff continues, but defensives look extended now. I see this as one day flight to safety unless oil holds above $100, then AI valuations need to reset further before rebound.

Oil Breaks $100: When Will the AI Selloff End?

As tech sold off, investors rotated into defensives: PG gained 5.58%, KO 2.87%, LLY 2.83%, WMT 2.82%, COST 1.99%, and Berkshire 1.32%. Bulls cite steadier earnings and stronger balance sheets as AI valuations compress. Berkshire’s roughly $360B cash position and renewed buybacks, Taylor Morrison deal, and larger Alphabet stake signal capital deployment. Bears warn defensive stocks are extended and could reverse if tech rebounds. What would confirm a lasting shift rather than a one-day flight to safety?

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