I believe the late-July selloff was partly amplified by forced hedge-fund liquidation, but valuation and crowded positioning were also important factors. Strong earnings alone may not be enough when future growth is already priced in.
I remain cautiously bullish on AI, especially if Jackson Hole and the Fed signal a more supportive rate environment. Personally, I prefer owning companies that can actually convert AI spending into sustainable revenue and cash flow rather than simply chasing the biggest AI spenders.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
