Newsroom

Lewis Carroll’s Through the Looking-Glass imagined a world in which familiar rules ran in reverse. This problem is now increasingly confronting Wall Street—not only in how it reads monetary policy, but in how it reads the equity market itself.

A leadership transition is already underway, but much of the market remains anchored to the last trade. Investors are still crowded into semiconductors, memory and artificial intelligence (AI) infrastructure supported by passive flows and a sell-side that continues to extrapolate an era of outsized earnings surprises that has largely run ...