Simion Furdui @Inv1nctus: "𝘾𝙝𝙞𝙥𝙨 𝙩𝙖𝙠𝙚 𝙖 𝙗𝙧𝙚𝙖𝙩𝙝𝙚𝙧. 𝙏𝙝𝙚..."

United Kingdom

𝘾𝙝𝙞𝙥𝙨 𝙩𝙖𝙠𝙚 𝙖 𝙗𝙧𝙚𝙖𝙩𝙝𝙚𝙧. 𝙏𝙝𝙚 𝙧𝙚𝙨𝙩 𝙤𝙛 𝙩𝙝𝙚 𝙢𝙖𝙧𝙠𝙚𝙩 𝙥𝙞𝙘𝙠𝙨 𝙪𝙥 𝙩𝙝𝙚 𝙨𝙡𝙖𝙘𝙠. The semiconductor index dropped 3% on Tuesday. $INTC (Intel) down 6.8%. Qualcomm down 11.5%. After a 173% run over the past twelve months — the best stretch for chips since the dot-com peak in 2000 — a pullback like this is not a surprise. It is normal. The more interesting story is what happened underneath. While the $SPX500 closed down 0.2%, more stocks actually rose than fell. 259 up, 243 down. Consumer staples gained 1.6%. Healthcare gained 1.9%. For weeks the market has been carried by a handful of names. On Tuesday, for the first time in a while, the weight was more evenly spread. That is a healthier sign than another narrow tech rally. 𝙏𝙝𝙚 𝙞𝙣𝙛𝙡𝙖𝙩𝙞𝙤𝙣 𝙥𝙞𝙘𝙩𝙪𝙧𝙚 April CPI came in hotter than expected. Energy drove most of it — oil is up, gas is at $4.50 a gallon, and the Iran situation is not resolved. But core inflation also moved higher, which is the part that matters more for the Fed. Rate cuts in 2026 are now effectively off the table. The question is no longer when they cut — it is how long they hold. For highly valued growth stocks, that matters. Not because the businesses are broken, but because the maths of valuation changes when rates stay high. This is the environment where quality and cash flow matter more than momentum. 𝙒𝙝𝙖𝙩 𝙄 𝙖𝙢 𝙙𝙤𝙞𝙣𝙜 Nothing reactive. The portfolio already has exposure to energy and gold as stabilisers. The tech positions I hold are in companies with real earnings and structural demand, not hype. A 3% chip pullback after a 173% run does not change that thesis. The rotation into staples and healthcare is worth watching. If it continues, it tells you the broader market is healthy even as the AI trade takes a breath. $NVDA (NVIDIA Corporation) reports next week. That will be the real test of where sentiment sits on the AI trade going forward. Until then, patience. Happy Investing, Simion

Not investment advice. The author may have financial interests in the mentioned instruments.

3 Mentioned

INTC

Intel

SPX500

SPX500 Index (Non Expiry)

NVDA

NVIDIA Corporation

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