Topic: How To Invest

What is Pat’s commentary for the week of March 4, 2025

Article Excerpt

Here’s an update on investing in artificial intelligence, inspired by AI history and recent investor news. After a deep market plunge in 2022, artificial intelligence start-ups have rebounded sharply. This has a thin but eerie similarity to the performance of computer & electronics stocks in the late 1990s, when these stocks boomed, and the second plunge many of them went through a few years later. We only began recommending computer & electronics stocks in earnest during and after their second plunge. They’ve had ups and downs since then, but have generally been terrific long-term performers. We expect to see, and take advantage of, a similar pattern in AI. However, we’ll wait to see worthwhile corporate profits emerge before we recommend stocks in the group. Meanwhile, we’ll keep an eye out for companies that make money from using AI technology they bought from some other company to cut their own costs and spur their long-term profit growth. However, some of the best stock performers for the…