What's driving the heavy tech selloff today? Is it entirely an AI disruption story or something else?
Host
Paul Dobson
Maybe it started with AI disruption, but these things take a life of their own. Momentum trades and trend-following parts of the investment community are feeding this drawdown in a narrow sector, now fanning out.
Paul Dobson
Yesterday's session saw more companies gaining than falling on S&P 500 and equal-weighted index at record high, showing interest in parts of market just not technology.
Nvidia CEO Jensen Huang called the selloff the most logical thing in the world. Does he have a point?
Host
Paul Dobson
He's talking his book. Correction in valuations hasn't been extreme. If looking for craziness, look at precious metals like silver up/down 10% every couple days.
Paul Dobson
Market needs reality check - take stock of where it is, future earnings prospects, how expensive to get there. Big tech companies facing questions about ROIC, return horizon, spending, when they break even.
Which asset classes are benefiting from rotation out of tech?
Host
Paul Dobson
Not asset classes so much as other equities - value stocks in line with economic growth but not geared to new economy.