Market Inflection Point?

Observant1

“In markets, inflection points are only recognisable in retrospect — sometimes years later.
But it looks more and more like US stocks hit an important turning point on the last Wednesday in October.
Up until that point, tech and consumer discretionary sectors had led the market, and highly speculative stocks
of all sorts were popular. Since then, leadership has passed abruptly to solid old-economy sectors: materials,
energy and consumer staples.”

“Most importantly, though, October 29 was when investor enthusiasm for heavy investment in AI peaked
and began to fall. Meta reported earnings that day, and announced a big increase in spending.
Investors hated it and the stock tumbled.
In the six weeks since, Nvidia, Microsoft, Oracle and Broadcom have fallen significantly.
The loss of speculative appetite has extended beyond AI.”

https://archive.ph/uu6z8#selection-1997.0-2009.527

FD1000

The S&P 500 is roughly 0.5% from its all-time high, even as AI momentum has stumbled. Meanwhile, diversification has finally worked, and for several months now.

From 2010 to 2025, I repeatedly argued that large-cap growth was the place to be, and that view paid off. Since 2025, however, I’ve posted several times that it’s time to diversify.