THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
economy-ss-8
Inflation Update: Weak demand softens shocks
DOWNLOAD
948 x 535 px AdobeStock_433552847
Economic Updates
Monthly Economic Update: Fed cuts incoming   
DOWNLOAD
equities-3may23-2
Consensus Pricing
Consensus Pricing – June 2025
DOWNLOAD
View all Reports
Metrobank.com.ph How To Sign Up
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph How To Sign Up
Access Exclusive Content Login to Wealth Manager
Search
THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
economy-ss-8
Inflation Update: Weak demand softens shocks
July 4, 2025 DOWNLOAD
948 x 535 px AdobeStock_433552847
Economic Updates
Monthly Economic Update: Fed cuts incoming   
June 30, 2025 DOWNLOAD
equities-3may23-2
Consensus Pricing
Consensus Pricing – June 2025
June 25, 2025 DOWNLOAD
View all Reports
Investment Tips 2 MIN READ

Technical Analysis: Is AI  a good investment?

Despite the high spirits from the debt ceiling deal and the ensuing AI-fueled rally in the S&P 500, don’t get your hopes up just yet. Metrobank’s Kyle Tan says you may be misreading the signs.

June 9, 2023By Anthony O. Alcantara
artificial-intelligence-ai-ss

The widespread exuberance in the US markets may have compelling catalysts, such as the lifting of the debt ceiling and the rise of artificial intelligence (AI).

But it may be standing on “thin legs”, as Kyle Tan, Metrobank Investment Officer, puts it. His technical analysis of the S&P 500 has convinced him of this.

“Markets have recently broken out of the almost 3-month consolidation range, indicating that bulls continue to remain in control of the market. They can potentially move higher as a Fed pause may be taken by the market as a positive development. However, a deeper analysis of the breakout tells us that the rally is narrow,” he said.

In other words, the foundation of this bullish mood isn’t solid.

The recent rally in the S&P 500 is driven only by a few big companies, particularly those in the tech industry.

“The S&P 500 crossing above the S&P equally weighted index tells us that a few names are lifting the market. Top heavy rallies usually indicate markets are closer to the top than the bottom. This observation may persist as markets clearly remains bullish in the short term, but caution is advised,” said Tan.

Don’t fall for FOMO

He added that markets have hitched on to the AI bandwagon, as investors like tech giants succumb to FOMO, or the fear of missing out.

“Chasing AI at this point bring investors greater risk than reward. There’s no need to fear being left behind. AI has been around for many years. Markets driven by FOMO are vulnerable to retracement, especially when the interest rate environment remains high,” said Tan.

The bottomline—is it good to invest in AI?

“It’s really about managing your risks rather than your returns,” said Tan.

“It’s time to entertain risk management in your portfolios at this point and perhaps shift to more defensive investments such as bond funds,” he added.

While AI has sparked excitement in the market, Tan advises, it may be better to focus on risk management and consider more defensive investments like bond funds. Don’t let FOMO drive your decisions—sometimes, JOMO (the joy of missing out) is the smarter move.

Still wondering if AI is a good investment? You may consult your relationship manager or investment specialist for more information.

ANTHONY O. ALCANTARA is the editor-in-chief of Wealth Insights. He has over 20 years of experience in corporate communications and has a master’s degree in technology management from the University of the Philippines. When not at work, he goes out on epic adventures with his family, practices Aikido, and sings in a church choir.

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Access this content:

If you are an existing investor, log in first to your Metrobank Wealth Manager account. ​

If you wish to start your wealth journey with us, click the “How To Sign Up” button. ​

Login HOW TO SIGN UP