“The number one question being asked by clients is: is this a correction or the start of something bigger. While my first instinct is to say that it is a normal correction, I am beginning to see some signs of concern. First off, earnings estimates for 2H′24 are seeing revisions lower with 3Q coming down 1.4% since July 1st and 4Q coming down 0.2%. The bigger concern however is the waning ‘AI Enthusiasm.’ The circular capex cycle for the largest, most liquid companies does not appear to be ending just yet, but investors are now questioning what the return on investment will be in the future.”

 “I do think bad fundamentals in this market environment are going to get really punished. Good fundamentals — I think the bar is just higher right now for a lot of these tech companies in this earning season... And that’s a dynamic that is not necessarily going to last for a long time, but that’s sort of the environment we’re in right now.”

 “A lot of these companies, the fundamentals are just still really good... And I think so long as the fundamentals remain good, and the earnings growth outlook is still positive, and earnings estimate revisions remain in a positive direction, I don’t think the stocks are unreasonably priced.”

 “This year the slump of Apple in the first half of 2024 goes beyond just seasonality but is directly a result of increased competition from Huawei, the only other major player in the premium segment outside of Apple.”

 “It may eliminate some jobs. Some of it may create additional jobs. But you can’t envision one app, one database, or one job where it’s not going to help, aid or abet.”

 “But in many ways this looks like a much-needed correction to an extreme market position.”