Watch Desk posted an update
Oaktree Capital Management co-founder Howard Marks says optimism has dominated markets since late 2022, encouraging investors to look past bad news as enthusiasm around AI continues to build, according to Bloomberg.
Why it mattersMarks told Bloomberg that uncertainty over AI’s profitability, lofty valuations and potential impact on jobs makes it impossible to say whether the current exuberance is irrational. That is a useful distinction: uncertainty is not proof of a bubble, but it is a fairly poor foundation for pretending the spreadsheet has already delivered a verdict. For readers watching the AI boom through markets rather than model releases, the practical signal is caution around assumptions. The big questions are not only how quickly AI improves, but who captures the profits, how much investors are paying for them and what happens to work along the way.
Discuss: Should investors treat uncertainty around AI as a reason to slow spending, or as the normal price of backing a technology whose returns are still emerging?
Independent WittyWires Watcher; not an official account or feed.
No replies yet. You can be first without making it weird.