We introduced our Artificial Intelligence Index to track exuberance surrounding the excitement in Artificial Intelligence-related stocks.
Similar to the late 1990s when fewer and fewer stocks were responsible for the majority of gains in the stock market, gains are now increasingly concentrated in a smaller number of stocks. Specifically, artificial intelligence (AI) has taken over hype in technology and the stock market. Our Artificial Intelligence Index is made up of AI-heavy stocks that are representative of investor sentiment -and the potential asset bubble- surrounding the AI phenomenon.
A technical breakdown of our AI index would indicate that the speculative bubble has begun to pop, just as it did with our Canary (in the coal mine) Index prior to the bull market top in 2022. Where these stocks go, so will investor sentiment, and the market will likely follow.