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Navigating the AI Air Pocket
An 'AI air pocket' refers to a potential concern for investors surrounding technology investments that may not be indicative of a bubble. Unlike a bubble, which is characterized by unsustainable growth, an air pocket signifies a temporary lull or stagnation in technology performance despite previous earnings growth. This is crucial for investors to understand as technology earnings have historically compounded at about 16% since 2014, highlighting the strong underlying growth even as market dynamics shift.