Fear + Greed Podcast – Are we in an AI bubble?
I joined Sean Aylmer for Fear and Greed’s Summer Series to discuss whether the powerful rally driven by artificial intelligence (AI) may now be approaching it’s peak. Drawing on lessons from past technology booms, I explained that although investors can correctly predict that a technology (in this case, AI) will change the course of humanity – it doesn’t automatically translate to great investment returns. The issue becomes apparent when a theme is perceived as structural, when in fact it is cyclical. We can see this in AI stocks where valuations have been inflated to a point that cannot be sustained.
While no one can call the exact timing of an unwind, signs suggest the best part of the run for many AI-linked stocks may be behind us. For investors, perhaps they should consider rebalancing their portfolios after strong equity gains and spread capital more evenly across opportunities beyond the AI theme.
You can listen to the episode on Fear and Greed here: Are we in an AI bubble?
Thinking about about rebalancing your portfolio? Speak to David Buckland or Rhodri Taylor at Montgomery on (02) 8046 5000 or email us at investor@montinvest.com.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
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