Stacey Ash

Whilst the AI infrastructure boom is rasing questions over a speculative bubble forming, this will only be evident in time, as investors look for signs of returns on the capital employed . Meanwhile, while the theme drives the US market, as well as the likes of Korea and Taiwan, returns have come from a broad range of assets. So global diversification is paying off and not forcing us into paying high valuations unnecessarily or reliant on the speculation in AI.

There are still pockets of relative value outside US large cap, even within the US itself. Bond markets remain challenging as governmental fiscal discipline is scrutinised by the market, so careful attention need to be paid to duration and increasingly alternatives are helping replace reliance here.

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