Especially in an environment where the top 10 AI stocks are 42% of the Index. And you have limited exposure to those names…
I am very familiar with a trade becoming a long-term investment, usually because the stock went down. Now, I have to make virtue of my situation saying, I am waiting for AI bubble to burst and my performance will catch up…
Indeed many of the data centers under construction are due on line by 2028. If there is to be an AI bust, it is likely in the next two years. Making good returns seems to require getting AI right. Personally I hope for AI success — meaning improved productivity — and continued growth for a decade or so.
Those who worry about AI could do well if it gives us a bust. But what do they invest in? Treasuries? Energy (war driven numbers)? Drugs (too volatile for me)? Finance (free of AI impact??)
Treasuries look very attractive. Otherwise risk is high.