⏳ Reading Time: 3 minutesIt seems that every time you open any sort of business news, the story is about Artificial Intelligence (AI) – unless it’s the President of the United States declaring yet another victory over Iran this year. As such, any thoughts and narrative about markets is always driven by AI. This has led many commentators and participants to believe that all financial markets are sat on a one-legged stool, and that leg is AI. Perhaps even extending as far as to say there is too much AI driven heat in all markets, or alternatively it has led others to believe that US tech is the only game in town and everything else follows.
But we have seen something interesting over the last three months. Admittedly three months is a short period of time, but there has been quite a meaningful sell off (followed by slight recovery) of US tech stocks. The Nasdaq went into correction territory in June and July, dropping by more than 10% in value. But this really wasn’t felt, why was that?
Apologies to those who don’t like charts, but I think this one tells the story really well. The key lines in question are the light pink (Nasdaq, representing US tech), the dark purple (European stocks index) and red (UK stocks index).
