AI warning puts expensive growth stocks under pressure

Stock markets headed into the weekend relatively calmly on Friday, but that calm proved short-lived. Over the weekend, investors were unsettled by prominent executives from the AI industry calling for the development of the most powerful models to be slowed down. As many AI-related shares are priced for years of exceptional growth, markets reacted sharply.…

At Shares Under Ten, we have become somewhat more cautious about the market recently. Economic growth is proving more resilient than expected, but both oil prices and bond yields are rising sharply. This is not an ideal combination for equities, particularly for companies whose valuations depend heavily on future growth. The market is still rewarding…

There was relatively little major market news this week. At SharesUnderTen, we can clearly see that the summer holiday period is now in full swing. Nevertheless, we remain focused, continue to follow developments closely and keep a close eye on every company in our portfolio.

Markets continue to show remarkable strength. On Wall Street, the S&P 500 reached another record high last week. In our view, that is not entirely surprising. US inflation was better than expected and, above all, earnings season is giving investors plenty of reason to hold on to their shares. Second-quarter profits across S&P 500 companies…