It’s been an unusual start to the year. On the one hand, virtually every asset class experienced a positive return in January. Conversely, technology names have been in a sharp drawdown since late October, punctuated by severe selling in software companies whose margins are viewed as potentially at risk due to ever increasing AI capabilities. Fortunately, those assets are moving elsewhere in the market to areas like small cap, non-US equities and sectors like energy and industrials which benefits diversified investors.
February 4, 2026
It’s been an unusual start to the year. On the one hand, virtually every asset class experienced a positive return in January. Conversely, technology names have been in a sharp drawdown since late October, punctuated by severe selling in software companies whose margins are viewed as potentially at risk due to ever increasing AI capabilities. Fortunately, those assets are moving elsewhere in the market to areas like small cap, non-US equities and sectors like energy and industrials which benefits diversified investors.