Swami Weekly Wrap: Nov 2nd, 2026 [Tech/equities breaking trend; new lows for gold; volatility elevated]

Hi Swami Subs,

The S&P 500’s -0.6% decline last week masked a much nastier rotation underneath the surface. Mega-cap growth and technology took the brunt of the damage, while lower-volatility, more value-oriented areas held up considerably better.

INTC fell -24% and GOOGL declined -12.6%, becoming the latest casualties as the market continues to wrestle with the “AI eating everything” narrative. The next phase of that discussion is already forming around the second-order beneficiaries of AI — companies that may not build the infrastructure themselves, but could benefit meaningfully from productivity gains. Morgan Stanley recently explored this idea in its piece on “100x AI Cultures,” highlighting names including SHAK (Shake Shack) and UNP (Union Pacific). Read it here.

It is a fascinating narrative. But as usual, we outsource the actual investment decisions to THE MACHINE — and that discipline has served us well. Swami All-Equity is now +17.4% YTD versus +11.7% for SPY, a 5.7 percentage-point lead.

And THE MACHINE’s message this week is fairly clear: step away from crowded mega-cap growth and lean more toward Healthcare, Value, Low Volatility, Materials, and select Asset Heavy names.