Everywhere I look in markets is pricing the end of the AI trade. It is even turning up in sovereign bonds, with yields now falling, after rising for most of the year. I find it a bit odd, as every physical commodity price I look at is still going up. The issue here is that you have to be sure that equities are accurately pricing the future. SK Hynix has typically been pretty responsive to spot DRAM prices. Not for the last three months.
Normally, starting from a point of “equities are wrong” is a recipe for disaster. But I can’t help but come back to some weird activity. One area in the AI space really confounds me.
