Despite a discouraging inflation report, Munster believes that AI presents a significant positive lever for stocks and predicts the market will soar as the technology develops. However, he also warns that the tech bubble will eventually burst, even though he believes we are at the beginning of a three to five-year bull market.
Key takeaways:
- The Nasdaq could potentially double in two to three years due to bullishness on artificial intelligence, according to Gene Munster of Deepwater Asset Management.
- Despite this, the latest CPI report shows that rates still matter and investors may be wrong about their rate-cut bets.
- The January inflation report showed a year-over-year uptick of 3.1%, causing a sharp drop in tech stocks and making a March rate cut unlikely.
- Despite discouraging inflation data, Munster believes that the development of AI technology will be a massive positive lever for stocks in the coming years.