BFS Shares Insights on AI, Stablecoins, and Tokenization in HBJ Economic Forecast Issue

This article by BFS director of research and a portfolio manager Rosa Y. C. Chen originally appeared in the Hartford Business Journal on January 12, 2026 under the headline: Emerging tech jitters create potential openings for value investors in 2026

Whenever new technology appears, investors immediately try to predict the effect it will have on existing businesses: which companies or industries stand to benefit, and which will see their business models disrupted?

A company perceived to have a high potential for disruption by new technologies can see its stock drop precipitously even if there’s no current evidence of disruption. Just the possibility is enough to make investors sell.

Currently, investors are anticipating disruption from three major sources: AI, stablecoins and tokenization. But not all of these disruption fears are evidence-based or equally rational.

Unfortunately, without evidence in hand and only rampant forecasting, all stocks at risk get sold. The underperformance that results from such concerns could represent an opportunity for value, contrarian investors.

Based on the disruptions we are already seeing from AI, investors are extrapolating the worst-case scenarios and divesting of industries and companies where there’s concern for the core business model.

In particular, many investors believe that AI will negate the need for specialized software such as tax preparation software (Intuit’s TurboTax) or orchestration software for enterprises (ServiceNow). Despite the fact that these companies are incorporating AI into their products, investors are skeptical and have rotated out of these names.

For some of these companies, the actual risk is likely overblown, at least in the intermediate term. And there’s lots of evidence of AI being an enabler for them. As these stocks fall, the risk-return proposition is becoming more attractive.

Find the rest of the article, including Rosa’s thoughts on how stablecoins and tokenization are creating unexpected opportunities in legacy sectors, visit the Hartford Business Journal.