Drawdowns

Momentum just had its worst two days since Covid. Here's exactly what I'm doing this week...

Marlin Capital Readers,

AI stocks got hit hard again last week. Semis took the worst of it (SOX -3.8%), and Friday was an absolute bloodbath.

The selling was global again. The KOSPI got crushed, and the US AI complex got hit right alongside it.

The Momentum Unwind

Momentum got hit the hardest last week. 👇

High Beta Momentum just had its worst 2-day move since Covid, down ~18% on Thursday and Friday alone.

Momentum is now down ~24% from its peak. That’s the worst Momentum selloff since Q1 2023, against an average drawdown of ~12%.

After a brutal ~2 weeks for AI stocks, here’s the question every investor is asking right now. 👇

Has the AI trade topped for the cycle?