Insights

Evidence is mounting that investors are beginning to rotate away from AI providers and toward AI adopters as concerns grow around compute costs, margin compression, and the sustainability of current valuations. The recent semiconductor selloff, dubbed the “chip-wreck” across Wall Street, has reinforced this theme, even as the broader AI trade remains supported by powerful secular demand trends. 

At the same time, historic equity outperformance versus bonds is setting the stage for meaningful rebalancing flows, raising the probability of increased volatility and a deeper correction in risk assets over the coming weeks.

Despite near-term turbulence, the longer-term backdrop remains constructive. The ongoing transition to a multipolar world continues to generate durable demand for artificial…

On Yahoo! Finance, Darius joined Josh Lipton to explain why rising volatility, Fed independence concerns, and geopolitical stress are reshaping market structure. With a historic degree of crowded bullish positioning, near-term chop remains likely. However, 42 Macro maintains a constructive medium-term backdrop as the economy continues to experience a structural uptrend in productivity growth.

If you missed the discussion, here are three key takeaways that likely have huge implications for your portfolio:

1) Productivity Is Driving Disinflation

Darius emphasized that inflation should be analyzed through trend impulses, not noisy month-to-month prints. When viewed through three- and six-month annualized rates, core CPI, core goods, core services, and…