Splash Zone: Hedge Funds Go Underweight AI For First Time Since 2023 As Record De-Grossing Meets Record-Low Correlation

Trick or treat?

For most of this earnings season the answer seemed to be "treat": 80% of S&P companies beat on EPS, blended Q3 profit growth is running at 30%, and US GDP just grew 3.4%. And then came the last 48 hours of October, which Morgan Stanley's Nick Savone, in his latest weekly "Global Reflections" (available to pro subs), says felt "a little like 'Friday the 13th,' with an exhausting succession of earnings reactions leaving investors struggling to catch their breath."