Bob Diamond: I Have No Expectation of a Bear Market, Artificial Intelligence is Important.

Concerns About a Bear Market on Wall Street

Bob Diamond, former CEO of Barclays Plc and manager of investment firm Atlas Merchant Capital, stated that the recent wave of intense selling seen on Wall Street would not turn into a bear market.

Healthy Corrections and Artificial Intelligence Investments

In an interview with Bloomberg Television, Diamond assessed that "risky assets are being re-priced," stating, "This is a healthy correction, not a situation that has turned into a bear market." He shared his views on investments in artificial intelligence, saying, "We need to evaluate its impact from a 2, 3, 5-year perspective."

The Impact of Artificial Intelligence on the Economy

Diamond emphasized that artificial intelligence has the potential to reduce inflation, stating it would be an important factor for global economic productivity. He also noted that there is some confusion regarding market valuations.

Effects of Public Debt

He mentioned that the increase in public debt in the U.S. due to fiscal spending has created a "dark cloud" over the markets. Daniel Pinto, Vice President of JPMorgan, argued that the valuations in the artificial intelligence sector need to be revisited.

Expectations of Market Corrections

Pinto warned, "There will likely be a correction, and this correction will also resonate in the S&P." It is anticipated that the five major technology companies in the U.S. will spend $371 billion on data centers for artificial intelligence models this year.

Future Predictions

McKinsey & Co. predicted that $5.2 trillion would be needed by the end of the year to meet the demand for this infrastructure, noting that it may not occur at the speed currently priced into the market.