What should we make of the fervor over AI stocks? Executive Chairman Jonathan Hirtle recently appeared on BNN Bloomberg’s The Open to offer insights on equity valuations and AI euphoria. Jon reiterated that serious investors are always focused on buying future cash flows at attractive prices. From that perspective, zeal over stocks like Nvidia seems overblown in the short term. While we own Nvidia, we are underweight relative to the market and prefer to own defensive growth companies with “moats” around their businesses. These include names such as Visa, MasterCard, and Waste Management. We are also leaning into European equities which have been beaten down despite signs that the economy and earnings are improving.

To hear more about our latest thinking, watch the full interview.