Rowan notes software stocks have fallen almost 70% following the recent realization that AI will impact the software sector.
“But apparently two weeks ago, we discovered that AI is going to impact software and we've been in a massive risk off mode. And so software stocks are down almost 70%.”
Rowan argues the 30% market overhang from geopolitics, inflation, and technology was foreseeable and predictable.
“I think the 30% overhang of geopolitics, inflation, technological change is now here. It was foreseeable, not maybe exactly how it occurred, but it was foreseeable. It was predictable.”
“That felt really good on the way up. That's not going to feel so good on the way down.”