We have produced a number of recent reports this year that highlighted the growing vulnerability in various A.I. and related equity sectors and markets. Cracks have now developed and some stocks are down sharply.
Last week we followed up with two reports that examined the downside in these vulnerable areas and investment strategies to defend against losses and to take advantage of potential opportunities.
The last great tech bubble burst in early-2000 and the fear was that all global equity indexes were headed for a major decline. Instead, due to a positive macro backdrop (at least until later in 2002), other better-valued sectors and markets that had lagged were able to move higher even as the Nasdaq index crashed.
Will a replay of the early-2000s occur, or a broad-based bear phase? We are betting on the former and favor a number of global markets and sectors, including select emerging markets, that have not been caught up in the recent mania.
