Chart of the Day: Old Tech vs. New Tech
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Today’s Chart of the Day from Bank of America is more of a “buyer beware” to those oversaturated in AI. It's important to understand the risks that other new technology experienced. Quite simply, there was a boom and then a bust. Notably, in the Telecom Bubble from 1992 to 1999 the market went up 403% vs. the current AI boom 417%. The past is no predictor, but understanding the past can prepare us for possible risks in the future.
Side note: The chart reminds us of the Shale Revolution, where our increased efficiency to frack for oil was THE catalyst to turn the market out of the Great Recession and without it the downturn may have lasted much longer.
Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.
Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.