Momentum Is Still Drawing Magnificent Mojo
The problem is that when Big Mo deserts investors, it will be Big Time.
Apple keeps the AI momentum going.
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Momentum — a strategy of buying what’s been winning and selling what’s been lagging — is always a powerful force in markets, but its outperformance since ChatGPT sparked the artificial intelligence frenzy has been remarkable. There are other factors behind the S&P 500’s record-breaking run. But in general interest rates, much higher than many expected six months ago, are not helping. Recent economic data indicate an incipient slowdown with inflation still blocking a rate cut, a combination that could make life very tough for the stock market. Instead, stocks have stayed calm, with momentum that draws its undercurrent from the Magnificent humming.