Questions about a possible market bubble have resurfaced this year, driven by rapid gains in AI-related companies and concerns about whether valuations can keep pace with expectations. Families are asking whether today’s environment resembles earlier periods of exuberance and what that might mean for long-term positioning.

In this episode of The Wealth Enterprise Briefing, Managing Partner Michael Zeuner speaks with Global Head of Macro Sam Sudame about how AI investment is shaping markets, what history can teach us and how to think about portfolio construction when enthusiasm and uncertainty coexist.

They discuss:

• How AI spending is supporting growth and how it compares with past innovation cycles
• What prior eras in railroads, autos and the internet show about valuations and behavior
• Why earnings growth sets today’s leading AI names apart from past bubbles
• How metrics such as the PEG ratio help judge whether valuations are reasonable
• What to watch next, including capacity constraints and risks to AI-related earnings

While history shows that great technologies can experience periods of over-optimism, Sam notes that today’s fundamentals still support much of the market’s enthusiasm. At the same time, both he and Michael emphasize the importance of diversified portfolios that balance exposure to powerful growth themes with counterweights across sectors and asset classes.

Families evaluating their equity allocations or thinking about how AI fits within a long-term strategy are welcome to connect with us to discuss how these trends may relate to their overall goals.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.