The Whole Market Is One Trade
Miss Market is wearing a sector costume
What looks like a diversified equity market increasingly behaves like one gigantic semiconductor position. This is not a call on the near-term direction of semiconductors, nor is it a dismissal of AI's enormous long-term opportunity. AI remains the defining investment theme of this decade. But that only makes it more important to understand how concentrated positioning, trading, volatility and earnings expectations have become. Here are the charts showing just how dominant the AI complex is today.