The debate around artificial intelligence has become one of the most important questions facing investors today. Is AI an overhyped technology absorbing too much capital, or is it laying the foundation for the next great wave of economic productivity? In our third-quarter investor letter, The Erdős Problem, we explore how markets have wrestled with that question and why the answer matters well beyond the technology sector.
This quarter’s Callan Family Office investment letter examines the significant investments being made to build the AI ecosystem, the market volatility that accompanied those expenditures, and the growing evidence that those investments are beginning to translate into corporate earnings growth and economic productivity. We also discuss the implications for inflation, interest rates, entrepreneurship, and emerging investment opportunities.
While innovation often creates uncertainty in the short term, history suggests that disciplined investors are rewarded for maintaining perspective during periods of rapid change. As always, we remain focused on long-term fundamentals, thoughtful diversification, and identifying opportunities created by evolving market dynamics. We hope you find the letter valuable and welcome the opportunity to discuss how these themes may affect your portfolio.
For our latest insights, please read our 3Q Investment Letter.