Is There an AI Bubble? Four Ways to Think About It and Why Regret Minimization Matters

“Having a view is easy. Deciding what to do in the portfolio when timing is unclear is much harder.” In this video, Matthew Kadnar, CFA walks through how he’s thinking about AI stocks and why the hardest problem is deciding how to size exposure when timing is unknowable.

He lays out four common paths investors take:
1. Go all in and keep riding the wave
2. Sell aggressively and step aside
3. Do nothing, intentionally or by paralysis
4. Use #regretminimization to balance the risk of being too early against the risk of being too late

What matters here is the #process. When you understand what you need to believe about markets, clients, and human behavior to hold a given portfolio, confidence goes up and emotional decision-making comes down.