Investor Daily’s latest article by Georgie Preston outlined Talaria co-CIO Chad Padowitz’s thoughts on the current market ‘overconfidence’ especially when it comes to AI.
While the artificial intelligence boom will produce major winners and losers, he argued it is still too early to identify them with the certainty markets are currently pricing in.
“We see so many portfolios positioned as though the next decade can be forecast with pinpoint precision. Investors are willingly paying for companies whose valuations are reliant on earnings years and even decades into the future,” Padowitz said.
“When you pay 20, 25, 30 times earnings for anything you are taking a confident view of a 15-to-30-year time horizon. But the future is unknowable and there are going to be substantial winners and losers from AI.”
