AI Sparks Wealth-Management Stock Selloff: Is Your Portfolio Next?

• An AI tool for tax strategies triggered a selloff in wealth-management stocks on February 10, raising fears of automation risk.
• Major firms like Raymond James, Charles Schwab, and LPL Financial saw significant drops, with some experiencing their worst sessions in years.
• The innovation by Altruist Corp. puts the wealth-management industry in the crosshairs of AI competition, following software and insurance sectors.
• Analysts note high uncertainty, with concerns about fee compression, market-share shifts, and the long-term impact of AI on financial advice.
• Despite some rebound in other AI-hit sectors, investors remain wary, though some experts believe the selloff is an overreaction.