Market Pros Split on AI Selloff: Opportunity or Warning Sign for Retirees?
When AI stocks dropped sharply and spooked retirement portfolios, prominent market voices landed in opposite camps over the weekend, and which side proves right determines how much risk retirees can actually afford to carry into what comes next.
“It is not time to panic, it is time to prepare.” Thierry Borgeat, CIO at Arvy, posted that line on X on November 1, two days after AI stocks dropped sharply and dragged the broader market lower. Several widely followed market voices reacted on X over the weekend of October 31 to November 1. They split into two camps. One asks whether Friday was the start of something worse. The other sees ordinary volatility that long-term investors can ride out. For readers at or near retirement who own index funds plus a few AI names, which camp proves right affects how much risk their portfolios can carry.
Borgeat leans toward opportunity. “Volatility is finally rising, tech stocks are being sold off, deleveraging is taking place,” he wrote, adding “We are now in the midst of great opportunities.” His view carries a longer-term caution. He argued that “Every 50 to 60 years, US stocks top out and lose 5 to 13 years after inflation. The clock says 2028.”
How Big Friday’s AI Drop Really Was
Jim Bianco of Bianco Research put the drop in historical context: “Where AI stands after Friday. The 7th-largest sell-off in the last two years, after rallying over 500% since ChatGPT’s November 2022 release. Also note, the all-time high was October 6, less than a month ago.”
Bianco’s ranking of seventh largest over a two-year window means Friday was painful but has company: AI stocks have taken several bigger hits in that period. The rally of over 500% Bianco cited also shows how much gain these holdings have produced, and how much there is left to give back.
Bears Point to the Anthropic IPO
Jim Cramer posted on Friday that “It is a stock-pocalypse,” and later wrote “End of month liquidation or people saying, ‘I will see you after the election.'” On Sunday he aimed at a specific target: “I think that the goal of the bears out there is to derail the Anthropic IPO. That will be the straw…”
Anthropic filed its S-1 with the SEC on October 26. It plans to list Class A shares on the NASDAQ Global Select Market under the symbol ANT. The number of shares and the price range have not yet been set. CNBC reported that the company’s path to the Nasdaq just got a lot bumpier, and Reuters linked Friday’s tech selloff to AI cash burn fears. Early Monday, Cramer added: “Let’s see if the sellers come back.”
Calm Camp Says 22 Big Drops Is Below Average
Charlie Bilello, Chief Market Strategist at Creative Planning, noted that the S&P 500’s 1.8% drop on Friday was its 22nd fall of more than 1% this year. By Bilello’s count, the average year since 1928 has 29 such declines. “Downside risk is the price of admission. Without it, there would be no reward,” he wrote.
Bilello also pointed to earnings strength, writing that S&P 500 profits “are on pace to surge 35% this year followed by another 15% gain expected in 2027.”
Macro Backdrop Retirees Cannot Ignore
Bilello’s other weekend posts provide useful context, though he did not present them as forecasts. Bilello noted that the U.S. economic expansion is now 77 months old, compared with a 67-month average since 1949. Bilello also noted the U.S. bond market has been in a drawdown for 75 months, which he called “by far the longest in history.” Retirees who rely on bonds to cushion stock losses should pay close attention to this prolonged drawdown.
What Retirement Savers Can Do Before the Next Drop
Both camps have a case. Bianco’s data shows AI stocks remain far above where the rally began, and Cramer is questioning whether forced selling has run its course. Bilello’s numbers suggest Friday fell within normal volatility, and Borgeat sees the weakness as a setup for opportunity, with risks further out.
The common thread is Borgeat’s advice to prepare. Before the next sharp move, retirees can review how much of their portfolio is held in AI-linked stocks, through both individual holdings and index funds weighted toward big tech. They can check that near-term cash needs are covered without selling into a drop. With midterm elections arriving on Tuesday and Anthropic’s IPO still pending, keep an eye on whether the selling returns this week.
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.
