Artificial intelligence is shaking up the stock market — and if you’re in retirement or thinking about retirement, you need to understand what it means for your portfolio. On this week’s episode of The Financial Hour of The Tom Dupree Show, hosts Tom Dupree Jr., James Dupree, and Mike Johnson break down how a single AI research report triggered a major Nasdaq sell-off, why “HALO” stocks are emerging as the safe haven trade for retirement investors, and how a dividend income strategy provides the stability that pure growth investing simply cannot match during volatile markets.

With the Nasdaq down nearly 2.75% year to date and the Dow dropping over 645 points in a single session, the team at Dupree Financial Group explains how their income-focused approach and hands-on research process has helped client portfolios outperform the major indices — with significantly less risk.

How One AI Research Report Rattled the Entire Market

The week’s biggest market story centered on a research report from Rinni, a small boutique research firm, that painted a grim picture of AI-driven economic disruption. Written from the perspective of 2028, the report described a scenario where AI causes mass white-collar layoffs, creating a self-perpetuating economic spiral with no natural correction mechanism.

As Mike Johnson explained on the show: “It was well written, and it was probably written by AI. Essentially AI causing mass layoffs, white collar jobs specifically, and causing a vicious cycle in the economy where there’s no self-correcting mechanism that you have with a normal economic downturn.”

The report called for a potential 38-40% market decline, and the reaction was swift — particularly in expensive technology stocks that had been treated as safe havens for the past several years.

James Dupree noted what this reveals about market psychology: “What it shows is how sensitive the market is right now, especially in some of these expensive areas of the market. The big tech companies were considered the safe haven for the last several years. Now you’re seeing the flip side of that.”

This kind of volatility is exactly why working with an advisor who does independent research matters. Unlike large national firms where you may be assigned an investment counselor following a one-size-fits-all model, Dupree Financial Group conducts its own research and gives clients direct access to their portfolio managers — the same people making the investment decisions.

Why History Says AI Won’t Destroy the Economy

While the Rinni report spooked markets, the Dupree Financial team took a longer view — one informed by decades of watching technological disruption play out in real time.

Mike Johnson put the situation in historical context: “You look back historically on what’s happened when you’ve had new technology disrupt an economy. You have upheaval in certain markets, but the unemployment rate has not gone up since you’ve had these displacements.”

From farming equipment to spreadsheets replacing bookkeepers to e-commerce disrupting brick-and-mortar retail, the pattern has been consistent: displaced workers move to other industries, and companies become more efficient and more profitable. As an investor, that increased profitability is ultimately what drives returns.

The team also drew parallels to the dot-com bubble of the late 1990s — noting that while some technology companies will thrive, others building out AI infrastructure at enormous cost may see those investments fail to generate returns. This potential destruction of capital is a real risk for investors who chase momentum without understanding the underlying business.

HALO Stocks: The New Safe Haven for Retirement Portfolios

One of the most actionable insights from this episode is the emergence of the “HALO” investment framework — Heavy Asset, Low Obsolescence. These are companies that, as Tom Dupree put it, “you can’t AI out of existence.”

HALO stocks include sectors like oil and gas, physical real estate, grocery stores, telecom companies, and industrial manufacturers like Caterpillar and Cummins. These companies own tangible assets and operate businesses that require a physical presence regardless of what happens in the virtual world.

Tom offered a memorable perspective on why the physical world will always hold value: “The physical world has to exist and be maintained regardless. Everybody that is betting on AI in such a big way, it’s like betting on the side bet in a bigger way than on the actual game.”

This HALO approach has been a significant contributor to Dupree Financial Group’s portfolio performance this year. Understanding how this investment philosophy works — owning individual stocks in carefully researched companies rather than being packaged into mutual funds — is one of the key differences between personalized investment management and the mass-market approach used by larger national firms.

Dividend Income vs. Pure Growth: Why It Matters When You’re Taking Withdrawals

Perhaps the most important segment for anyone in retirement or approaching required minimum distributions was the team’s detailed comparison of income-focused investing versus pure growth strategies.

Mike Johnson broke down the math clearly: “With an RMD, you have to take X amount out every year. From a pure growth perspective, you have no idea what the price is gonna be over the course of that year. But by having an income focus, we can say with better conviction and better certainty what’s gonna be generated from income over this year.”

The key insight is this: if your portfolio’s dividend income matches or exceeds your required withdrawals, the price of the underlying stocks becomes less critical in the short term. You’re not forced to sell into a down market. With a pure growth approach — even a traditional 60/40 allocation — you may have to sell stocks or bonds at unfavorable prices just to meet your distribution requirements.

This is the kind of personalized portfolio analysis that makes a real difference for people in retirement. It’s not a one-size-fits-all allocation model — it’s a strategy built around your specific income needs and withdrawal requirements.

The Hidden Risks of High-Yield Covered Call Funds

The team also issued a timely warning about a popular product category that may look attractive on the surface: covered call funds with sky-high stated yields.

James Dupree highlighted one particularly egregious example: “There’s one fund called Yield Max that had a 114% listed dividend. The fund is just gonna go down for the most part.”

Mike Johnson explained why: “That’s the difference between a synthetic yield versus a real yield. A real yield of a company where the dividend comes from the earnings — that’s a real dividend.”

If you’ve been living off a covered call fund’s “dividend” while the share price steadily declines, you’ve essentially been spending your principal without realizing it. This is a critical distinction that many investors — and even some advisors at large national firms — fail to make clear. FINRA’s investor education resources can help you understand the difference between income sources in various fund structures.

Key Takeaways from This Episode

• A single AI research report from Rinni triggered a significant Nasdaq sell-off, exposing how sensitive expensive tech stocks have become to disruption narratives.
• History consistently shows that technological disruption displaces workers into new industries while making companies more efficient and profitable — not the doomsday scenario some predict.
• HALO stocks (Heavy Asset, Low Obsolescence) — including oil, real estate, grocery, telecom, and industrials — have emerged as the new safe haven trade and are driving strong portfolio performance.
• Dividend income strategies provide retirees with greater certainty around withdrawals than pure growth approaches, especially when required minimum distributions are in play.
• High-yield covered call funds with eye-popping stated dividends may actually be returning your own capital — not real income from company earnings.
• The 10-year Treasury yield dropping below 4% confirms that U.S. government bonds remain a safe haven during market sell-offs.
• Mortgage rates approaching 5.75% could help housing markets, but alone won’t solve the fundamental supply and affordability challenges facing homebuyers.
• Conducting thorough research on individual companies — rather than chasing momentum or buying based on headlines — remains the foundation of sound retirement investing.

Frequently Asked Questions

What are HALO stocks and why do they matter for retirement investors?

HALO stands for Heavy Asset, Low Obsolescence. These are companies that own physical assets and operate businesses that cannot be replaced by artificial intelligence — think oil companies, real estate, grocery stores, telecom providers, and industrial manufacturers. For retirement investors, HALO stocks offer stability because their core business models are not at risk of technological disruption, making them a reliable component of an income-focused portfolio.

How does a dividend income strategy protect my retirement withdrawals?

When you’re taking required minimum distributions or regular withdrawals in retirement, a dividend income strategy means your portfolio generates cash from company earnings regardless of what stock prices do in any given year. This means you’re less likely to be forced to sell holdings at a loss just to meet your withdrawal needs — a risk that pure growth strategies carry during market downturns.

Are covered call funds safe for retirement income?

Not necessarily. While covered call funds may advertise attractive yields — sometimes exceeding 100% — the “dividends” often come from capital gains or options premiums rather than actual company earnings. Over time, many of these funds experience significant price declines, meaning investors are effectively spending their principal. It’s important to understand the difference between a synthetic yield and a real dividend backed by company cash flow.

Will AI cause a stock market crash?

While AI disruption is real and will create winners and losers across industries, historical precedent suggests that technological change tends to make the overall economy more productive rather than destroy it. Workers displaced by new technology historically move into new roles and industries. The bigger risk for investors is overpaying for AI-related companies that fail to generate returns on massive capital expenditures — similar to what happened during the dot-com era.

How is Dupree Financial Group positioned during this market volatility?

The team has been proactively raising cash and bond positions in client portfolios, which helped cushion the recent sell-off. Combined with holdings in HALO stocks, dividend-paying companies with conservative balance sheets, and Treasury positions that benefit from safe haven flows, client portfolios have outperformed the major indices year to date with significantly less volatility. You can listen to more market commentary or schedule a consultation to learn more.

Don’t Guess — Know What You Own and Why You Own It

As Tom Dupree said during the show: “The key isn’t timing the market. It’s understanding what you own and why you own it.”

If you’re in retirement or thinking about retirement and you’re not sure whether your portfolio is built to generate reliable income — or if you’re wondering how AI disruption could affect your holdings — the team at Dupree Financial Group is here to help. With 47 years of investment experience, personalized separately managed accounts, and direct access to your portfolio managers, you’ll get the kind of hands-on attention that large national firms simply can’t provide.

Schedule your complimentary portfolio review today:

• Call (859) 233-0400
• Visit dupreefinancial.com
• Book directly at dupreefinancial.com/book

Dupree Financial Group is a registered investment advisor (RIA). All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results. The information provided in this blog post and podcast episode is for educational purposes only and should not be considered personalized investment advice. Please consult with a qualified financial advisor before making investment decisions.