Max Wasserman Stays Long-Term Bullish on AI; Likes GOOGL, MSFT, AVGO

Market participants face mounting uncertainty as high AI capital expenditure meets rising interest rates and persistent inflation. Max Wasserman, SVP and Portfolio Manager at the Miramar team, emphasizes that the primary risk lies in the debt market, where the escalating cost of capital threatens to undermine the viability of aggressive AI investments. While long-term prospects for AI remain positive, current valuations appear stretched, necessitating a cautious, defensive portfolio approach. A barbell strategy—balancing technology exposure with stable sectors like healthcare and energy—serves as a hedge against volatility. Furthermore, the potential for Federal Reserve rate hikes, coupled with geopolitical instability affecting oil prices, suggests that investors should prioritize companies with strong cash flows capable of self-financing rather than relying on increasingly expensive debt markets.