So What? with Shannon Saccocia

Welcome to So What? with me, Shannon Saccocia, CIO – Wealth at Neuberger.

In this series, I'm answering questions submitted directly from advisors about what's top of mind for you.

You bring the “What?” you're seeing with clients and I'll help you understand the “So What?”

Let's get into it. Our question this episode was actually voted on by our followers, and I'm not surprised the poll went in this direction:

“With concerns about an AI bubble, how might you position client portfolios today?”

Over the past two years, we've clearly seen the impact of AI on markets, from the equity market to the credit market to just overarching GDP numbers that have continued to be spurred by the spending that we're seeing from a capital expenditure perspective on AI.

As a result, there's a lot of questions about how much does this compare with perhaps the dotcom bubble that we experienced back in the late 90s, and what should we be concerned about today?

So what does this mean for investors?

Our view is that the proverbial easy button as it relates to the AI trade is probably behind us.

Much of that capex that I mentioned has been focused on building up the supply mechanism for AI.

So creating from a semiconductor perspective, an infrastructure perspective, the ability for this product, this new innovation, to be able to be utilized by companies outside of the technology sector.

This year, it's going to be really important that investors are looking at those companies in industries such as health care, industrials, financials that are likely to put these innovations into implementation in order to not only increase productivity, but to grow their businesses over time.

Thanks for joining us for this episode of So What?

If you have a question you'd like answered, send it to ask-sowhat@nb.com