The rats are abandoning ship as the top performing AI and growth stocks this year are quickly becoming top short candidates (look out below!). Specifically, the hard selloff in speculative AI stocks (over the last 2 weeks—see table) is not something I am buying as the BH Sentiment Index has fallen sharply (Now 38 out of 100—Fear!)—and it’s not the type of fear I am buying. Previous top ranked growth stocks (e.g. IREN and Bloom Energy) are crashing.
I dumped my holdings of Applied Digital (APLD) Innodata (INOD) and cut my position in Vertiv (VRT) by half. I’ll be sharing an updated BH Disciplined Growth Portfolio soon.
In the meantime, here is a look at the BH Sentiment Index—which has dropped into fear territory. I think this could be a good time to add quality names, but I am staying away from the most speculative names in the market for the time being.
At the end of the day, you have to do what is right for you. Disciplined, long-term, goal-focused investing remains a winning strategy.