
What Goes Up
How to Avoid Getting Burned by the AI Hype
Sep 1, 2023
Market veteran warns against investing in AI-focused stocks without true ties to the industry, discusses market trends and the recent market rally. Talks about the challenge of separating hype from fundamentals in the AI industry. Explores valuation and market rally. Highlights the importance of using the right AI solutions for specific business needs. Discusses China's economic challenges and their impact on the global economy. Also mentions a funny story about a restaurant owner buying expensive cheese.
38:16
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Quick takeaways
- Beware of AI-focused companies without genuine ties to the industry exploiting the hype for profit.
- Consider seasonality in market performance, but don't make major investment decisions solely based on historical trends.
Deep dives
Market rally cools off in August
After a strong rally in the stock market in the first half of the year, August saw a slowdown in performance. The S&P 500 and NASDAQ 100 experienced a bumpy road with several quick drawdowns. However, market strategist Art Hogan believes that this is a seasonally tough period and historically, August and September have been rough months after a strong start. Despite the recent market turbulence, Hogan remains bullish and expects the market to grind higher in the coming months, with a focus on underperforming sectors that are starting to gain traction, such as energy and industrials. He also highlights the outperformance of small-cap stocks and anticipates a continued uptrend in the Russell 2000 index.
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