AI & Semiconductors have been priced for perfection for months. Software multiples stretched. Anything with AI automation got a premium.
Anthropic drops new legal work flow automation tools. Suddenly the market realises that AI isn't just enabling software. It is competing with it. That's enough to trigger a sentiment shock, not a structural trend reversal.
This is what a healthy reset looks like: Excess froth gets burnt off. Momentum traders exit. Funds rebalance. Strong companies get cheaper. Weak companies get exposed.
Beneath the chaos, opportunities are quietly starting to brew.
Why not B: Structural Trend Reversal? We are not seeing earnings collapsing. Demand isn't evaporating. Cloud, Cybersecurity & enterprise spend remain intact.
Why not C: Defensive Pivot. Tech is still the engine of global growth.
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