Winds of change

We are only five weeks into the new year, yet two market narratives that dominated into late January are already being challenged. First, software stocks have come under pressure as investors reassess both the substitution risk from generative AI and the durability of enterprise AI capex. Second, the debasement trade has cooled, with Bitcoin, silver and gold all pulling back.
Mr. Market likes simple stories. But fundamentally, not much has changed. We view this move mainly as healthy profit-taking in crowded themes — the kind of reset that often creates fresh opportunities for the patient investor.