AI stocks have exploded higher, but is the correction finally over—or is this just another bear market rally?
The artificial intelligence boom, technology stocks, energy shares and commodities surged together in a monster Wall Street session. In this video, I explain why this may mark the bottom of the latest AI stock market correction, why missing a single major rally can destroy market timing returns, and why I have chosen to remain invested through the volatility.
There is a much bigger struggle developing beneath the daily stock-market movements: America versus China.
When the “America First” trade is winning, AI stocks, semiconductors, technology, energy, commodities and US reshoring companies tend to rise together. When that trade weakens, the entire group can fall like a rock. Wall Street is effectively deciding whether America can compete with China in artificial intelligence, robotics, industrial manufacturing, critical minerals, chemicals and energy.
China has already established enormous strength in manufacturing, robotics, raw materials, industrial chemicals and electricity generation. It is also rapidly closing the gap in artificial intelligence, including through AI model distillation. The United States must now decide whether to protect the billions being invested in American AI models, restrict Chinese access, build defensive infrastructure and go all-in on reindustrialisation—or accept becoming economically subordinate.
My portfolio is positioned around what I call the Trump trade:
AI
Technology
Energy
Commodities
US manufacturing
Industrial reshoring
It is about recognising that his economic programme is broadly pro-energy, pro-technology, pro-AI, pro-commodities and pro-American industrial production.
The ride will not be smooth. AI stocks are moving up like rockets and falling like rocks. But after yesterday’s powerful rally, there is a strong possibility that the worst of this correction has now passed.
I also discuss:
Why investors often lose money by successfully avoiding crashes
Why getting out of the market is easier than getting back in
The difference between bull-market declines and bear-market rallies
Why holding can outperform repeated attempts at market timing
The impact of Iran and geopolitical risk on oil prices
Why I own Norwegian oil producer Equinor
AI model distillation and the US-China technology conflict
China’s dominance of robotics, manufacturing and industrial supply chains
The continuing American private-equity takeover of British companies
Why more UK-listed businesses are likely to be acquired
