Half my portfolio is AI infrastructure and half is software. For three months, the decline in software has cancelled out my gains in the other half of the portfolio. Should I cut my losers? Peter lynch did say water your winners after all.
My software exposure is wirh companies still printing cash and I hand selected them because I think they will be enabled by AI innovation (insurance data, warehouse management, etc). But the market has not taken any mercy on anything software related.
I think in the future there will be both AI winners and software winners, but the market is treating it like either or.