Billionaire Steve Cohen Downplays a Recession, Predicting a Stock Market Rally Fueled by AI. Here's What He's Buying.
The S&P 500 has gained roughly 14% so far in 2023, in stark contrast to its 19% decline last year. Furthermore, each of the major market indexes has rallied more than 20% from their respective bottoms, signaling the next bull market, at least as defined by some experts.
Helping fuel the market's current surge is excitement about recent advances in artificial intelligence (AI), including the large language models and generative AI that produced ChatGPT. The next-generation chatbot took the world by storm, adding more than 100 million users in its first two months of availability -- making it the fastest-growing consumer app in history.
Yet the excitement regarding AI is being countered by concerns about a potential recession. As recently as April, economists at the Federal Reserve Bank predicted a "mild" recession was likely this year. This prognostication has some investors sitting out the current stock market rally.
Source Fool.com
