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Everything rally ..
I feel that over the last few months, we’ve witnessed a true 'everything rally'—equities, commodities, and even bonds soaring in unison. But this market euphoria shouldn’t make the disciplined investor waver or chase trends. Chasing price action is a dangerous play that often ends in a bull trap (bag holder).
There is no doubt that with the arrival of a new horizontal technology like AI—a rarity in history—intrinsic values will undergo a massive revaluation as our way of life changes. Yet, reallocating capital, whether between asset classes or within equities, must be done proactively and slowly. It should be driven by major macro shifts and earnings, rather than the impulse to chase price.
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