Food for Thought
While AI-based automation will ultimately help just about every company in terms of the bottom line, it will be a Red Queen's Race when it comes to market positioning and investor interest. Ie, for most companies, AI will be a tool for not falling behind rather than a tool for getting ahead. Small caps are a concentrated group of companies that fall into this Red Queen's Race track. It's also a good signal group for sniffing out this type of regime change around inflation vs growth as the primary bogeyman in the market. The market's correlation ratio is a fine testament to the implications here. The SPY ($SPY(SPY)) Liquidity Premium measures how much trading liquidity is being showcased in the SPY ETF versus in the 500 individual stock components of the S&P 500 index. When it is very high, it is often a key buy signal.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
