Not to you, apparently - #480.
You're mistaken. #480 doesn't discuss the sources of HMG's funds.
So do I stop with America or go Asian??
They can overlap a fair bit these years, especially in terms of volatility. Taiwan and Korea in paticular are major suppliers of processors and memory chips respectively, so when the AI knob gets adjusted their stocks fly about with the US ones.
The mid-term elections in the US have made a fair difference because Democrats don't like AI, apparently.
I'm not really looking for growth, so I'll avoid being invested much in AI.
There's a vast amount of money flowing around between the AI companies and their suppliers. It's referred to as "circular". They're starting to fund their spending from debt now not their profits. It's reckoned some of the big ones will fail. "Experts" occupy themselves with drawing parallels with the various bubbles and crashes we've seen before.
Not many are convinced that there is enough profit in AI for companies to pay vast amounts of money for it.
The Chinese produce much cheaper versions - partly by copying.
So there are some unreliable pillars holding the edifice up, I think.
I keep putting it off, but for my purposes, boring stuff is more appropriate. I've clung on to small amounts of some high tech stocks and some of them have crashed.
History shows you can come out OK if you hold through the dips, but that has the risk of inconvenience if you can't wait the months or years for the recovery. If you're in your 30's of 40's you have time, not so much if you're retired.
That sort of age-related argument has always been sage, but particularly so now because there IS an apparent bubble. It's a bit LESS appropriate than it used to be because you can be more nimble with your placing of investments, but that takes time and effort, and isn't easy.
For my purposes, very low risk stuff picked to avoid the highest taxes, will do. For medium term holdings, it's possible to do some picking of sectors, (such as renewable energy because Democrats like it and it's not too AI related,) and "swing" trade it, watching the momentum. Or say the UK, because we're too primitive to have much of anything AI.
Derek's funds are highly concentrated in high tech. The Asia Pacific fund is 70% Taiwan and S. Korea.
That means dominated by just three companies - Taiwan Semiconductor is the worlds biggest processor chip maker, Samsung and SK Hynix make memory chips.
Samsung and SK Hynix have dropped 30+% in the last couple of months, and Taiwan semi 20%.
I daresay they might go back up, eventually, but could also drop a lot further.
A lot of other companies which are part of the AI infrastructure have dipped too, such as Dell, which makes a lot of the racks, is down 35%.
That list of 10 companies above, has just
one, Lilly (Pharma) which isn't heavily affected by AI. They vary, Apple is less.
Sobering?
Dividend paying companies tend to be Financials, Utilities are only connected through power supply, Healthcare is separate, and so on.
