Time will tell:
Corrections are part of any market cycle and that could very well happen given the current concentration in a handful of tech stocks.
- However, timing the market is always a risky endeavor, and it may be better to stay fully invested barring the belief of a serious downturn.
- While warnings of an AI bubble have been touted for years, given price-to-earnings ratios and massive amounts of capital spending, there are also significant differences compared to the dot-com era.
- The leading AI players today are highly profitable with strong cash flows, and have a market that is ready and eager to rapidly adopt revenue-generating tools and efficient models
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