As the end of the first quarter of 2023 approaches, Sid Ahl and Erika Pagel are joined by guests that have deep insights into what is surely one of the most fascinating technological developments of the new year: the new developments in generative AI, as demonstrated most vividly by the viral rise of Chat-GPT, a large language model that has set a new record amongst consumer tech applications as the fastest to reach 100 million users according to Bloomberg.
The discussion includes Jon Bassett, a partner at NextGen Venture Partners, a network-driven venture capital firm that is part of Brown Advisory and was an early investor in Everlywell, Carta, Mercury, and Maven Clinic among other breakout companies. Jon shares his boots-on-the-ground view of how the venture landscape is shaping up, including the hype around AI startups. Joe Pasqualichio, an equity research analyst on our tech team who focuses on the Internet sector, analyzes the latest trends in a tech sector that has seen a dramatic change of fortunes to kick off the year as well as the wide-ranging opportunities created by AI.
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Topics in this episode include:
- The macro outlook for the new year, as markets kick it off with a meaningful tailwind and the first few months see a wave of stronger-than-expected data. While most economists were previously discussing whether a soft landing could be engineered, the implications of a “no landing” scenario where further policy tightening may be in store are now front burner.
- A look at who may benefit from China’s long-awaited reopening. As the world’s second-largest economy emerges from years of COVID-19 lockdowns, consumers there are flush with cash and could boost U.S. multinationals and aggregate demand.
- Asset allocation for a year where bonds offer the most attractive returns they have compared to the expected returns for stocks in decades. We discuss why the healthy yields offered by the fixed-income market may offer an opportunity to simplify portfolios, and why the relative value offered by emerging market and small-cap stocks may make them an attractive allocation as well.
- A look at how the venture capital landscape has adapted to the shift in tech company valuations over the last year and how startups are reprioritizing their goals for this environment, what sectors may now be more promising in our view and how venture capitalists are evaluating the flood of AI startups.
- A look at the prospects of prominent tech names, many of which are held in our portfolios, as well as potential winners and losers of a coming AI arms race ranging from Internet giants to the semiconductor companies needed to power AI.
As always, we welcome your thoughts, feedback and questions.
2023 Asset Allocation Perspectives and Outlook
We are pleased to share Brown Advisory’s 2023 Outlook. Each year, the Annual Outlook report assesses the current investment landscape and discusses some of the main themes being expressed in client portfolios. Read more >
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