Managed Asset Portfolios - Special Edition Webinar - February 2025
Feb 03, 2025Join us for this special edition webinar, where Michael Dzialo, President and CIO, and Zachary Fellows, Portfolio Manager, discuss recent significant developments surrounding DeepSeek, a Chinese AI company that has shaken the technology sector — particularly within AI — and its broader implications for the stock market. We explore how this development affects technology investments and market dynamics, providing insights into the potential consequences for investors and industry trends.
DeepSeek is an open AI company based in China, comparable to major players like OpenAI and Meta. Recently, they released their DeepSeek R1 model, which has sparked considerable interest and concern in the market.
Our discussion highlights how unexpected innovations or claims — like DeepSeek's performance and cost-efficiency — can create volatility due to investor reactions and market speculation.
Just as the dot-com bubble saw significant overinvestment, the current AI boom may be experiencing similar dynamics. We emphasize the importance of critical analysis when evaluating new technologies, as initial excitement may not always reflect the full picture. Investors are encouraged to look beyond the hype, scrutinize technical claims, and consider the long-term implications of technological developments on market dynamics.
We end our webinar with the quote: "MOMO can lead to FOMO, which leads to ONO." This phrase emphasizes the risks associated with momentum-driven investing (often referred to as "MOMO"), where investors are tempted to follow market trends without thorough analysis. This behavior is often fueled by the fear of missing out (FOMO) on potential gains, which can lead to impulsive decisions driven more by hype than by solid fundamentals. The quote serves as a reminder that chasing trends without proper due diligence can result in unfavorable outcomes, highlighting the importance of a disciplined, research-based investment approach.
As portfolio managers, it's our job to avoid that "Oh No" part, ensuring we make thoughtful, well-informed decisions rather than being driven by market hype.
Next month, we’ll delve into inflation trends, including an in-depth discussion on the U.S. dollar and its performance compared to other currencies. Stay tuned for insights that matter to your financial decisions.
As always, please feel free to reach out with any questions. We appreciate your continued support and are grateful for your trust in us.
Thank you for joining us today, and hope everyone has a wonderful, happy, prosperous and healthy new year.
Managed Asset Portfolios Investment Team
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