| "Actually the quoted 'sudden correction' is not referring specifically to AI, but the market in general" As I read that quote it states that valuations "particularly" for AI companies "appear stretched" This suggests the "correction" will apply to those valuations in particular The report later refers specifically to these so-called "technology" companies "5: Equity market valuations had increased since Q2, to near all-time highs, partly driven by strong Q2 earnings of US _technology firms_. The price appreciation of the largest _technology firms_ this year had increased the concentration within US equity indices to record levels. The market share of the top 5 members of the S&P 500, at close to 30%, was higher than at any point in the past 50 years." "6: Equity valuations appeared stretched, particularly in backward-looking metrics in the US. For example, the earnings yield implied by the Cyclically-Adjusted Price-to-Earnings (CAPE) ratio was close to the lowest level in 25 years - comparable to the peak of the dot com bubble. ... Some _technology companies_ were trading at valuation ratios which implied high future earnings growth, and concentrations within US equity indices meant that any _AI-led_ price adjustment would have a high level of pass-through into the returns for investors exposed to the aggregate index." Given their "stretched" valuations according to this report, any "sudden correction" would apply to these so-called "technology" companies Aside from the instances where the report refers to overvalued "tecchnology" companies particularly, the parent comment is correct that the report does not refer to "AI" specifically Thus, ... |