investmentyoo

Investment History Episode 20: The Market After High Interest Rates and Artificial Intelligence, Why Must Investors Return to the Basics? After the pandemic crash of 2020, the stock market experienced one of the fastest recoveries in modern financial history. Strong policy responses from governments and central banks, ultra-low interest rates, liquidity injections, digital transformation, and the growth expectations surrounding technology companies all combined to push markets ahead of the real economy. Then, in 2022, high inflation and rising interest rates shook growth stocks and long-term bonds at the same time. Investors realized how sensitive asset prices had become to the low-rate environment. In 2023, a powerful new growth narrative appeared again. That narrative was artificial intelligence. Markets began reflecting expectations for the end of rate hikes, slowing inflation, cost reductions and margin improvement at large technology companies, and growing investment in semiconduc...