The stock market, like a living organism, is constantly changing. Ups and downs occur continuously, and headlines and shifts in investor sentiment often lead to sharp moves in individual securities. Sometimes these movements are justified by fundamental factors; at other times they represent an excessive market reaction. In some cases the change in conditions is temporary, while in others it signals a structural shift.
If we believe that a decline in a security is temporary or not fully supported by fundamental factors, it may sometimes make sense to consider buying the stock at lower levels — “picking it up” at attractive prices with the expectation of benefiting from a potential recovery. However, such windows of opportunity tend to close quickly: assets are often bought back rapidly, and the upside disappears, making the investment idea less compelling. Moreover, such trades always carry risks — there is no guarantee that prices will recover.
Creative destruction
Between late January and the first half of February 2026, the market capitalization of leading software companies fell by nearly one trillion dollars. One of the main catalysts for the panic was Anthropic, which introduced a new AI tool called Claude Cowork along with related plugins. The product demonstrated the ability not only to generate code but also to autonomously handle large portions of routine corporate work — from modernizing legacy databases to fully automating legal document workflows.
The market reacted almost immediately, viewing this as a potential existential threat to traditional software developers. Investors began to consider AI as a possible disruptor of the traditional SaaS (Software as a Service) model: new AI agents can perform tasks that previously required dozens of specialized software products. This created concerns about a potential compression of the software stack. In addition, AI significantly lowers barriers to software development, allowing startups to compete more cheaply and quickly with established players. As a result, investors feared that large technology companies could lose some of their pricing power. Long-standing concerns about elevated valuations in the technology sector further intensified the sell-off.
However, the question of whether independent AI models will truly undermine traditional IT companies remains open. Large technology firms are either developing their own AI systems or partnering closely with AI developers. The market will need time to determine whether AI will disrupt their businesses or instead drive a new wave of efficiency and growth.
Against this backdrop, the shares of several companies that have fallen sharply during this period may deserve closer analysis:
· Microsoft (MSFT US) · ServiceNow (NOW US) · Datadog (DDOG US) · RELX (REL LN) · Veeva Systems (VEEV US) · Salesforce (CRM US) · Intuit (INTU US)
Energy shock
In late February and early March, the world faced a severe geopolitical crisis. The escalation of the conflict in the Middle East and the subsequent closure of the Strait of Hormuz triggered a sharp surge in energy prices (oil and natural gas) as well as certain commodities such as aluminum and fertilizers, while also contributing to a global sell-off in equity and bond markets.
The disruption of shipping through the Strait of Hormuz is particularly painful for the global economy, as it is a key artery for exporting hydrocarbons from the Persian Gulf — especially important for Asian economies. Stock markets in energy-importing countries came under significant pressure. Businesses whose margins depend heavily on fuel prices, such as airlines, may also be particularly vulnerable.
The key question remains how long the disruption to supply will last. Before the escalation of the conflict, oil prices had been under pressure due in part to rising supply. If the impact of the conflict proves temporary and does not develop into a prolonged global energy crisis, some of the assets that declined during this shock may once again attract investor attention.
· iShares MSCI UAE ETF (UAE US) · iShares MSCI China ETF (MCHI US) · iShares MSCI Japan ETF (EWJ US) · iShares MSCI South Korea ETF (EWY US) · iShares MSCI India ETF (INDA US) · Delta Air Lines (DAL US) · United Airlines Holdings (UAL US)
It should be emphasized that the attractiveness of these assets is largely based on the assumption that current market conditions will normalize and that the companies retain their long-term potential. Investors should keep in mind that this scenario is not guaranteed.