Life After AI: Where The Money Is Now Moving Submitted by QTR's Fringe Finance As I write this Thursday morning, Dow futures are green while Nasdaq futures are down roughly 0.5%. It’s a small but interesting divergence, and one that supports something I’ve been predicting for a while now: a rotation away from speculative technology and AI-related investments and toward established businesses with more predictable earnings and cash flows .
I continue to believe tech, particularly the more speculative corners of the AI trade, is headed lower over the short to medium term. Yesterday’s rally didn’t change that view. As I discussed yesterday, citing Gordon Johnson, I think much of the move could be attributable to VIX compression and the unwinding of election-related hedges.
Once the election uncertainty disappeared, investors no longer needed as much protection, implied volatility fell, and the resulting repositioning helped push stocks higher.