After last week’s sell-off, a bit of green on the screen was welcome. Whether the nerves have settled is another matter.
Had a chat with Daniel Martin on CNA938 about the recovery in Asian markets, and whether the AI sell-off points to something bigger.
For now, I lean towards this being a correction. But that doesn’t mean it’s over. Today’s bounce is encouraging, though I would want to see more before calling the all-clear.
I still think the AI story has legs. Share prices, though, had built in some very high expectations. Investors now want to know how all that spending turns into profits, and how long they’ll have to wait.
For anyone holding a lot of tech, this is a useful time to check the portfolio. You could own the same companies through several funds without realising it. You can believe in AI and still decide you have got too much riding on it.
We also covered falling oil prices, plus what higher US rates could mean for borrowers and banks here.
With COP31 opening, we touched on jobs too. If workers need to move into new roles, training should start while they’re still employed. Waiting for the retrenchment letter leaves them with a much harder task.
Thanks, Daniel, for the chat and thoughtful questions. And thanks to Jon and Julie for making it happen.
AI may well change our lives. The question for investors is, how much of that future have we already paid for?
Listen to the conversations on CNA Rewind:
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