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S&P 500 continues to bounce off the 7,000 threshold: Last week, we already noted that the S&P 500 seems to be pricing in a near-perfect future, something that rarely materialises in reality. This is especially true for stocks related to AI. While we do not deny that AI will bring many improvements, it is important to remember the vast amounts of money currently being invested in AI both in the West and in China. This is creating intense competition, which will make it very difficult for AI-related companies to meet the highly optimistic profit expectations. Moreover, it remains uncertain whether sufficient electricity can be generated in the future to power all AI-related businesses. In our view, this alone is reason enough to be sceptical about the high valuations of various AI companies, a sentiment that likely applies to many other stocks as well...