The AI story may not follow a predictable narrative
The AI boom is larger in scale and advancing more rapidly than any previous tech-focused capex surge. Exceptional investment opportunities will emerge, but also elevated valuations, extreme volatility and extensive disruption.
The lessons of history: Leadership shifts, outcomes diverge
In past tech booms, early leaders were often disrupted. But the eventual outcomes diverged sharply. Some industries endured a long period of competition and consolidation. Others coalesced quickly around one dominant firm.
The power of fundamental analysis, the need for flexibility
Allocators must consider both diversification within AI and diversification from AI. Applying fundamental analysis to sector and security selection offers a counterbalance to excessive market enthusiasm.
Three promising paths to an AI-conscious asset allocation strategy
Lean into core AI technology with a targeted, active approach to equity investing. Use the full allocation to spread out AI returns and risks across asset classes. Revisit past assumptions about portfolio risk diversification.