The vibes around AI are bad. The narratives are worse.
“AI will lead to severe deflation”
“AI will displace all workers”
“AI will destroy the economy”
Below are but the most recent narratives put out there. I am not here to review or critique anyone’s research as I think you should read all available viewpoints, but this is what’s out there so let’s try and make sense of the narratives surrounding AI.
The is a follow up from my prior AI note: Artificial Ambitions in mid October. At the time, my conclusions were that the AI build out would run into capacity issues, and thus this was bullish for Copper, Silver and Nat Gas. Since that note Copper is up 18%, Silver is up 71%, Nat gas is flat (after a 150% round trip). Ironically the Nasdaq is flat. My IG 2s5s curve steepener recommendation has been flat but begun steepening of late and may have more to go.
