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Bubbles, recessions, & AI

We now suspect growing euphoria over AI will drive the S&P 500 to a significantly higher level than we had previously forecast by the end of next year. In the meantime, though, we still think a mild economic downturn may take some heat out of the stock market in the second half of 2023.

In view of the wider interest, we are also sending this Asset Allocation Update to clients of our Global Markets service.

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