Why Aren’t Investors More Worried?

Bullish:

• $SEMIS - Semiconductor stocks have shown remarkable resilience and are making new highs despite the Iran conflict, with the AI theme returning strongly to markets.

  • “semiconductor stocks, which we had these big splits within the AI and tech universe with semis and some of the memory stuff doing really well, software coming under pressure as people worried about this competition from the new AI applications, that has come back again in in force”

    Dominic·14:19

  • “You've had semiconductors make new highs through all the pre conflict highs, one of the parts of the market that has already made progress beyond where they were coming into it”

    Dominic·14:38
• $TECH - Parts of the tech complex remain attractive for selective long positions, with investors reluctant to move away from their core tech positions.

  • “we've like parts of the tech complex”

    Dominic·17:17

  • “people liked the themes they had in their equity books. And what they tried to do was protect their index exposure and their overall equity risk, but were pretty reluctant to actually move away from their core positions”

    Dominic·14:54

Bearish:

• $SOFTWARE - Software stocks are under pressure from competition from new AI applications and have continued to face pressure even during the market recovery.

  • “software coming under pressure as people worried about this competition from the new AI applications, that has come back again in in force”

    Dominic·14:27

  • “We've had more pressure on software stocks even in this recovery period”

    Dominic·14:34