We Asked Vanguard’s Chief Economist Why AI Has Two Huge Tails — And Which One Wins

About this episode

Joe Davis discusses the implications of AI and other megatrends on the economy and investing strategies.

AI could become the next general purpose technology, reshaping economic growth, inflation, interest rates and portfolio construction. Vanguard Global Chief Economist Joe Davis joins Excess Returns to explain why AI, demographics, fiscal deficits and globalization may define the next decade for investors, and why the biggest market winners may eventually come from outside the technology sector. Coming into View: How AI and Other Megatrends Will Shape Your Investments https://amzn.to/4v8L7Of Vanguard Megatrends Research Hub https://explore.vanguard.com/megatrends.html Topics Covered: AI as a potential general purpose technology Why long-term megatrends can affect short-term market returns The four forces shaping the next decade: technology, demographics, deficits and globalization Why Vanguard believes AI could lift U.S. growth above consensus How AI could offset aging demographics and rising debt Why great technology cycles often include major stock market drawdowns The difference between AI automation, augmentation and new industry creation Why the next AI winners may be in healthcare, financial services and other service industries The risk that AI disappoints and fiscal…

People in this episode

Host: Excess Returns

Guest: Joe Davis

Topics covered

• AI as a general purpose technology
• megatrends in investing
• impact of demographics on economy
• fiscal deficits and globalization
• market winners outside technology

Keywords

• AI
• economic growth
• portfolio construction
• market returns
• technology cycles
• healthcare
• financial services
• 60/40 portfolios

Mentioned in this episode

Organizations: Vanguard, Vanguard Megatrends Research Hub

Products: Coming into View: How AI and Other Megatrends Will Shape Your Investments

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