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Commentary
Mean reversion algorithmic trading resumed last week on the perception that Asia would take the AI lead from the U.S. (This is a false narrative, since we are still in the early stages of the AI build-out.) For evidence of this mean reversion, here is a review of the trading trends in the first half of July. This Bespoke Investment Group chart illustrates exactly how these mean reversion algorithms impacted the Russell 1000:
This chart illustrates exactly how these mean reversion algorithms impacted the Russell 1000. (Source: Bespoke Investment Group)Currently, AI growth is constrained by memory and computing restrictions, as the backlog to build more data centers is still growing. OpenAI, Anthropic, Grok, and other AI developers have hit a wall, for now….
Mean reversion algorithmic trading resumed last week on the perception that Asia would take the AI lead from the U.S. (This is a false narrative, since we are still in the early stages of the AI build-out.) For evidence of this mean reversion, here is a review of the trading trends in the first half of July. This Bespoke Investment Group chart illustrates exactly how these mean reversion algorithms impacted the Russell 1000:
This chart illustrates exactly how these mean reversion algorithms impacted the Russell 1000. (Source: Bespoke Investment Group)Currently, AI growth is constrained by memory and computing restrictions, as the backlog to build more data centers is still growing. OpenAI, Anthropic, Grok, and other AI developers have hit a wall, for now….
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