Company bosses and investors are brimming with enthusiasm for artificial intelligence – but the general public isn’t buying it, a survey has found. About 93% of corporate leaders and 80% of investors said they think AI will be net positive for society compared to just 58% of ordinary people, according to the poll by nonprofit Just Capital. The research, centered around perceptions of the technology that has sparked vast investment commitments this year, underscores the divide between those developing and ...

Core Viewpoint - GMO warns that the AI sector resembles a classic investment bubble characterized by high valuations and rampant speculation [1][2] Group 1: AI Bubble Concerns - GMO has consistently cautioned about an AI bubble, reiterating its bearish stance as market exuberance grows [1] - Quantum computing stocks have surged over 1200% in the past year, leading to valuations that appear excessive [2] - The current market environment is compared to the dot-com bubble of 2000, suggesting potential risks for investors [3] Group 2: Investment Opportunities - GMO identifies attractive investment opportunities in developed market value stocks and non-US small-cap value stocks, especially in Japan [4] - Investors can shift their portfolios away from the AI sector without sacrificing long-term expected returns, as other risk assets are trading at fair valuations [6] - Funds such as the Avantis International Small Cap Value ETF (AVDV) and the iShares MSCI Intl Value Factor ETF (IVLU) provide exposure to these alternative investments [6]

Market Overview - U.S. stocks exhibited mixed performance as investors await earnings results from the "Magnificent Seven" stocks, starting with Tesla (TSLA) after market close on Wednesday [2][3] - The S&P 500 index and Nasdaq Composite were nearly flat, while the Dow Jones Industrial Average increased by 0.5% [3] Tesla Earnings Expectations - Tesla is anticipated to report earnings per share (EPS) of $0.56, following three consecutive quarters of missing consensus estimates [3] - In the same quarter last year, Tesla reported an EPS of $0.72 [3] Netflix Performance - Netflix (NFLX) stock declined in pre-market trading after the company fell short of revenue and profit expectations [4] - Despite Netflix's miss, 85% of S&P 500 firms that have reported earnings thus far have exceeded profit expectations, indicating a strong earnings season [4] - If the trend continues, the third quarter of 2025 may be the best earnings quarter since 2021 [4] Futures Market - Stock futures for the S&P 500, Nasdaq 100, and Dow Jones are mixed ahead of the market open on Wednesday [4] - S&P 500 futures rose nearly 0.1%, while Nasdaq 100 futures fell by 0.3%, and Dow Jones futures declined by 0.1% [4]