AI Trade Over? Update November 14, 2026

What happened? Where did the rug go? 

Whoops!

Can’t say I am surprised with the artificial intelligence (AI) stock smash up.

I wrote a few articles on it in passing months.

Although I was a little early in my prognostication, it did come to pass. We may have seen the climax top discussed in my previous article a week or so back.  (Email me for a copy).

The CEO of Nvidia, the hottest AI stock going during the mania, resigned under the rumors of multiple affairs. We just never know who’s going to throw their moral compass out the window and get a hand caught in the proverbial cookie jar.

With the advent of the exodus of the Nvidia CEO under less than reputable circumstances, although there may be no direct correlation to the AI trade faltering, anytime we start seeing malfeasance happening around a stock mania, it can signal, start or add to the collapse.

Certainly, seemed like the climax top I referred to in last week’s article occurred in the AI space, and with the Nvidia blowup, the rest of the pack may fall into the realm of irrelevancy.

One never knows of course but time will tell us soon enough if traders have had enough of the AI trade. Not much help for you AI stock traders, I know.

What seems somewhat incredible to me is the Dow Jones resiliency.

Holding stubbornly over the 50,000 mark for almost half a year, this level was unimaginable to me a few years back. Just goes to show the stock market rises with inflation as well.

It always has been this way. Stock markets are a pretty good way to ward off the effects of inflation, that’s if one has the money to buy stocks. There are many people that do not however. That’s one of the things that allow the rich to get richer. Not participating in the markets can lead to the ranks of the poor rising at the same time.  

With the drastic election results flipping blue both branches of government, the future is somewhat shrouded in uncertainty. History teaches us when the houses are split, it is thought that little will get done in the arena of new laws due to gridlock. Although both houses will be controlled by one party, however, the Republican president is a vetoing body. The current strength in the markets may be because the belief that same gridlock will result in little getting done.  At least until the 2008 Presidential election.  Should a Democrat be elected in 08, it could mean big changes may be coming and no one knows what that will do to stocks.

There exist many cross currents in the markets. They include but are not limited to political concerns. inflation, national security, and monetary concerns.

Monetary concerns specifically refer to the actions of the federal reserve going forward and how they will address the inflationary environment coupled with the stagnating economy.

Wealth disparity also is first and foremost on the minds of many American consumers as reflected in recent election results. Voters leaned into more than a handful of socialistic/democratic candidates.

It’s hard to get a bead on the future market direction. Many analysts believe a rally into yearend will occur, while others conjecture the top of the markets have already been reached.

The recent four-hour shutdown of all departing airplanes nationwide last week certainly has added to the uncertainty.

As usual, we will sit and wait and let the Mr. market tell us what it has in store for us in the future.

“Watching the markets so you don’t have to”

  This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services.  Email: [email protected].