The Non-Artificial Intelligence Index
Big difference. Lack of hype.
The non-artificial intelligence index is also known as the Russell 2000 index, that rag-tag collection of small capitalization names little known and followed only as an afterthought by the big, aggressive money now in charge of markets.
It consists of companies in the business of farm products, of shoe making and of making electronics for microwaves, among other small cap-ish types of industries. You won’t find too many corporate headquarters in Palo Alto or Seattle.
Here’s how the daily chart for the benchmark iShares Russell 2000 ETF looks:
See how this week’s closing price is unable to close above the July high? It’s up off the late October low but stalling.
Now take a look at the Nasdaq-100 daily price chart:
It closed above the July high in mid-November and has stayed there.
What’s the difference between the 2 charts?
Basically, it’s that the Russell 2000 does not contain hyped-up “Magnificent 7” artificial intelligence names the way the Nasdaq-100 does.
Take out the AI and that’s what you get.
I’ll have a more extensive post on this over the weekend.
Not investment advice. For educational purposes only.
I'm still not buyiog into the overall Russell Index. Too many banks and Powell / Yellen are not their friends. There are a couple stocks I like however so tune in.