“How Much Would an AI Crash Destroy?”
Amazon was a long-term winner but its stock fell about 90% in the dot-com crash, and buying at the peak in 1999 meant waiting until 2009 to break even.
Then, in late June, the index providers did their annual rebalance. They moved those chip stocks out of the value index and into the growth index and moved Amazon, Apple, and Microsoft the other way into value.
And the timing was, by complete accident, absolutely perfect. The chips got sold right at the top of their run, just before they rolled over, and the value index picked up the big tech names right as they were touching their lows.