Alpha shift: AI No Longer Leads

It took just one week for the market to turn on its head.

Between frontier labs undermining the AI narrative, cracks forming in credit, and growing doubts about the economics of the buildout, the market's former leaders are suddenly its biggest losers.

But here's where things get interesting.

This isn't just another rotation from tech into the rest of the stock market. Capital is finding its way back into Treasuries, even as inflation runs hot. We managed to get ahead of this turn almost to the tick, but underestimated how quickly it would unfold.

What we expected to take weeks happened in days.

And we still think this unwind is far from finished.