AI is losing its Luster…

On a relative basis there are probably better places to invest than AI at this point. The market action of yesterday and today are critical to the extension of the markets. The driving force around the bull move, AI, seems to be losing its relative luster. Various measures are rolling over. Here is one measure that I watch as I am more interested in Climate than AI. This chart looks at the relationship between the index of the two big AI stocks (NVDA + PLTR) versus the two big Climate Tech stocks (QS + RUN).

What you see in this daily bar chart is that AI peaked vs Climate Tech on June 18, had a big decline into July 18 and is now on a bounce. We will see how this plays out, but Climate Tech would appear to be the place to be prior to the October blow-off of the bubble.