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A Time of Both Opportunity and Risk in AI, Says Oppenheimer's Stoltzfus

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Bloomberg Dec 31, 2024 08:24 · 21.3k Views

John Stoltzfus, chief investment strategist at Oppenheimer, says investors should exercise patience and have right-sized expectations and tolerance for fluctuation to take advantage of broader material gains from AI over the coming years.

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Transcript

  • 00:00 We'll expand a little bit here on that theme of AI.
  • 00:02 That was a big part of the trade that we saw in the market certainly in the first half of the year.
  • 00:06 A lot of questions though towards the second-half of the year about when we start to see the material gains from that on the bottom line, on the top line for that matter as well.
  • 00:14 We see that in 2025, John.
  • 00:17 Yeah,
  • 00:17 I think what we'll begin to see it more and more.
  • 00:20 I think they
  • 00:20 this year it's been primarily the amount
  • 00:23 of investment that has been made
  • 00:26 in AI both from within the technology sector itself, but in the other sectors
  • 00:31 by management's that want to remain
  • 00:34 very vibrant and effective in attracting investors attention
  • 00:39 in terms of creating greater efficiencies for revenue and earnings growth.
  • 00:44 And on the other hand, we think it's the consumer
  • 00:47 is going to be a big part of the upgrade that
  • 00:50 began in
  • 00:52 in, in this year and likely will gain some traction in 2025 and and on forward.
  • 00:59 But all this stuff takes a bit of time,
  • 01:01 but for investors you know it it
  • 01:03 it who have patience,
  • 01:06 are diversified, know what they own, why they own it
  • 01:09 and have right sized expectations about how
  • 01:12 different asset classes, different sectors, cyclicals versus defensive, etcetera
  • 01:18 operate.
  • 01:19 This looks like
  • 01:20 a a time of both opportunity and risk.
  • 01:23 And the main thing is to have some tolerance
  • 01:26 for fluctuation and a tolerance for risk
  • 01:29 that is realistic
  • 01:31 and right sized.