Is Tech About to Crumble? How to Prepare
After months of inflows into AI-related technology stocks, we believe the first cracks in the trade have emerged. In this week’s update we are going to review the action in Tesla, Taiwan Semiconductor, and Netflix and what clues the earnings calls and stock reactions may give us about the path forward in IT. Second, we will review the impact of rising commodity prices on inflation expectations, interest rates, and asset allocation.
Key Takeaways
- We think Tesla and Netflix were the opening acts of the bubble unwind.
- We believe there are signs that disinflation has ended, and reflation may be upon us.
- Energy, Copper, and Gold may benefit from a tech unwind and a reflationary economy.
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