Flight to Value: You're getting a small preview today as to what is to come...

Today is an excellent preview of the "flight to value" phenomenon that occurs when capital shifts away from high-risk, speculative assets and into undervalued assets with strong fundamentals. AI stocks are going down and the SaaS companies that have been an endless conversation on this subreddit are going up.

This is just one day so who knows what will happen in the near term, but today is just a small glimpse into what will happen when the AI bubble unwinds. Companies like **CRM, NOW,** and other SaaS companies that have gotten beaten down will rise.

Additionally during periods of high inflation and higher interest rate capital flows towards companies with high FCF and again these SaaS companies have rock solid balance sheets and strong cash flow.

These market trends play out again and again, it is routine and standard capital allocation. If you have a medium to long term perspective and you're not positioning yourself for this you should seriously take some time to consider it.