Economist Benjamin Graham once observed, “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” In our view, this statement is present today, as a significant group of equity investors are “voting” on a narrow set of stocks that they believe will dominate their respective markets, deliver outsized short-term shareholder gains, or simply hope that the stock price will increase as other investors assign the same “certainty” of outcomes to these companies. These investors often favor any companies related to the artificial intelligence (AI) theme, meme stocks, Special Purpose Acquisition Companies (SPACs), and cryptocurrency firms.

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