US tech mega caps are grappling with surging capital expenditure, casting doubt on whether the premium attached to these stocks in the AI super cycle has become detached from fundamentals. Investors are now turning their attention to emerging markets equities where they have the opportunity to buy into the AI hype at a much lower price.
Current fiscal and monetary policies are taking the world down a necessary, but dangerous path, according to co-CIO of Bridgewater Greg Jensen. He told investors asset allocations should focus on diversification, and assets that benefit from fiscal and monetary policy moving together.
Two ex-central bankers, Randy Kroszner and Lucrezia Reichlin, said that central banks were doing everything they could to ensure markets continue to function. They said inflation was unlikely.
Former Treasury Secretary, Larry Summers, questioned the successful functioning of US democracy and America’s continued ability to “lead the world”.
For some investors, plunging equity valuations in March were an opportunity to ‘get back in’ at reasonable prices. More recently the rapid recovery has been a cause to position conservatively once again.
FIS 2020 will discuss how the unprecedented government stimulus in response to the pandemic could affect investor returns and specific allocations. Areas of concern include a sharp rise in zombie companies kept afloat by government support.
Given the disruption and chaos currently facing the world, society and economies, this session looks at what an imagined future would look like.
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FIS 2026 at Harvard University