AI optimism clashes with bubble concerns

The new year has begun with global equities at, or near, record highs. However, many investors are torn between believing valuations are justified thanks to artificial intelligence’s (AI) potential, and fears that this “bubble” will deflate akin to the dotcom event in the late 1990s. Equity investors face the tough decision of pulling out and missing potential future rallies or remaining invested and risking valuation downturns. US tech valuations are at levels that are becoming harder to justify, with investors, venture capitalists, and companies pouring trillions into AI development. As a...