Know Your Risk Podcast The AI Revolution in Investments
Dec 23, 2025
Zach and Chase dive into the evolving landscape of investments influenced by AI. They discuss the potential pitfalls of AI, arguing some businesses might struggle while others thrive. The hosts examine global market dynamics and how international firms might leverage AI for rapid productivity gains. They also analyze capital flows, questioning whether money is leaving U.S. markets. Additionally, expectations for 2026 are shared, alongside tactical advice for diversifying investments into cash-flowing international businesses.
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Episode notes
AI Hype Versus Valuation Reality
- AI hype can create powerful market narratives that ignore math and valuation constraints.
- Zach Abraham warns that storytelling alone doesn't prove durable upside or room for gains.
AI Can Cannibalize Big Tech Profits
- Chase Taylor and Zach note AI winners may cannibalize incumbent profits even as models and infrastructure scale.
- They highlight asymmetric outcomes where some firms win while others lose core franchises like search.
Overseas May Capture More AI Productivity
- Overseas markets offer ways to capture AI-driven productivity rather than only chasing US market-cap narratives.
- Chase argues China and other markets embed AI into factories and logistics faster, creating tangible productivity gains.