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Market & Portfolio Review: 05-22-23

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The AI Bubble?

As leadership and stock market breadth continue to narrow, the evidence is building that the recent investor rush into stocks labeled as “artificial intelligence” are beginning to enter the manic phase of the cycle. As growth investors, we know the pain that can cause once the cycle turns, and at this point, we believe the prophetic narrative of AI dominance is the equivalent of picking up pennies in front of a bulldozer.

In this week’s market update, we will review how large the top of the market now represents of the S&P 500 and what this may portend for future S&P 500. We will also review the role of gold in a portfolio and the macroeconomic setup for the metal in the coming weeks and months.

Key Takeaways

  1. We think the rush into FAANG stocks increasingly looks like a mania

  2. Economic growth and inflation continue to decelerate

  3. Precious metals and energy appear to be in short supply in the event of a demand shock

The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a SEC registered investment adviser. Registration does not imply a certain level of skill or training.  Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.

Robert Reaburn

Robert Reaburn

Robert Reaburn is the Executive Vice President and Head of Wealth Management at LifePro Asset Management. He works with financial advisors building diverse financial portfolios that best empower their clients with a lifetime of financial security.

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