'TRIFECTA OF CONCERNS': Investment strategist digs into war, private credit and AI

• Investors face a 'trifecta of concerns': war risks, private credit, and AI disruption in the software sector.
• The current earnings season is strong, with revenue growth outpacing expectations, signaling healthy aggregate demand.
• A clear divergence exists between hardware (semiconductors) benefiting from 'insatiable' AI infrastructure build-out and software companies experiencing AI-driven disruption.
• Opportunities for long-term investors may emerge in some software names that are currently undervalued due to AI disruption fears, though 'instant gratification' is unlikely.

Investment strategist Marta Norton discusses a 'trifecta of concerns' for investors: geopolitical risks, private credit, and AI disruption. She highlights a strong earnings season with robust revenue growth, but notes a divergence between strong hardware performance (driven by AI infrastructure) and software companies facing AI-driven disruption. Long-term opportunities are seen in some software names despite current pressures.