investmentyoo

Investment History Episode 19: The 2023 Artificial Intelligence Rally and Big Tech Concentration, Why Did the Market Return to Growth Stocks? The market of 2022 experienced a powerful shock from inflation and rising interest rates. Growth stocks and technology stocks that had received high valuations during the period of ultra-low rates and abundant liquidity after the pandemic suffered sharp corrections. Long-term bonds also failed to avoid the damage caused by rising yields. Investors belatedly realized how much low interest rates had supported almost every asset price. But in 2023, market sentiment began to change again. Inflation started to slow compared with the previous year, and investors began expecting that the cycle of central-bank rate hikes would eventually end. Recession fears remained, but the market responded first to the possibility that the worst phase of inflation had passed. At the same time, a new investment narrative emerged. That narrative was artificial intellige...