From Railroads to AI: History Rhymes
In our recent client luncheon, Glen referenced the buildout of the railway in the 1880’s to the growth of artificial intelligence (AI). Our Chief Market Strategist, James Thorne, evokes similar imagery and also addresses the question of whether AI is a “bubble”. Here’s a key quote from Jim that underscore’s Glen’s conclusion:
“Forget the bubble nonsense. AI is nowhere near overhyped. At 1.5 per cent of GDP, it’s only getting started. Railroad CapEx in the 1800s peaked at six per cent of GDP and reshaped the world but AI is scaling with an even loftier ambition.”
The Accumulation Phase: Where Smart Investors Look Now
Glen also agrees with Jim about the opportunity ahead for investors: “So what’s the play? This isn’t the bubble stage; it’s the accumulation phase. The window remains open to acquire scalable bets in energy infrastructure, chip foundries, power utilities, and data pipelines before their full value is priced in.”
The Takeaway: Investing in Tomorrow’s Infrastructure
The whole 5-minute read is worth your time. You can check it out here: November Market Insights: Wealth In A Capex Supercycle – Wellington-Altus
We’ve also included a video from Jim below:
Glen