ProShares Strategist Simeon Hyman's Call to Diversify Beyond AI and Economic Outlook

On December 26, 2025, Simeon Hyman, global investment strategist at ProShares Advisors, appeared on CNBC’s ‘The Exchange’ to discuss economic conditions and investment strategies, highlighting that the U.S. economy shows no signs of overheating and advising investors to look beyond the AI trade [1]. The interview was broadcast on CNBC and shared on YouTube, but a full transcript was not immediately available.

On the day of the interview, U.S. equity markets showed modest declines, with noticeable sector differentiation. The AI-concentrated NASDAQ Composite fell -0.22%, while the S&P 500 (-0.08%) and Dow Jones (-0.04%) had smaller declines [0]. The Technology sector (home to most AI leaders) declined -0.147%, while non-tech sectors outperformed: Communication Services (+0.698%), Real Estate (+0.381%), and Consumer Defensive (+0.236%) [0]. AI-related ETFs also reacted: the Global X Robotics & Artificial Intelligence ETF (BOTZ) dropped -0.25%, and the Invesco QQQ (tracking the NASDAQ 100 with heavy AI exposure) fell -0.01% [0]. This sector rotation aligns with Hyman’s advice to diversify away from AI, though trading volume for AI-related ETFs was below historical averages (BOTZ: 333k shares vs. 792k avg; QQQ: 26.8M shares vs. 57.7M avg), indicating cautious market participation on the holiday-shortened day [0].

1. Sector Rotation Signal
   : The outperformance of non-tech sectors on the interview day suggests initial investor responsiveness to Hyman’s call to diversify beyond AI, though low trading volume means this reaction may not be sustained.
2. Fed Policy Implications
   : Hyman’s reassurance that the economy is not overheating could ease concerns about potential Fed rate hikes, which generally support equity markets, helping to limit larger declines despite the sector shift.
3. AI Market Vulnerability
   : The AI trade has driven significant 2025 gains (NASDAQ +20.3% YTD as of Dec. 12 [2]), so a broader shift away could lead to heightened volatility in AI stocks and ETFs.

• Risks
  : AI market volatility from a potential shift away from the trade; uncertainty if economic data will confirm Hyman’s “no overheating” claim (contradictory data could trigger rate hike concerns); higher risk associated with ProShares’ leveraged/inverse ETFs (e.g., TQQQ, SQQQ) due to daily reset mechanics [3].
• Opportunities
  : Potential growth in non-AI sectors (Communication Services, Real Estate, Consumer Defensive) as investors diversify; reduced rate hike concerns if Hyman’s economic outlook is confirmed, supporting broader market stability.

Investors should note the initial market reaction to Hyman’s advice, with AI-heavy sectors and ETFs declining slightly and non-tech sectors outperforming on the interview day. However, critical information gaps remain, including the full interview transcript (which would provide details on Hyman’s 2026 expectations and recommended non-AI sectors) and longer-term market reactions. Decision-makers should monitor upcoming GDP, inflation, and employment reports to verify the economic outlook, and supplement with multi-day market data and ProShares ETF performance to assess sustained impacts.