Data: AI hype has hit its peak

💡 The Lightbulb
Will AI go the same way as the other recent fads?

Data compiled by thenetworkec.com shows that Artificial Intelligence has hit a peak and they’ve compared the cycle to other technologies…

Do you reckon it’s the top?

We sort of do…

But not in a way of ‘AI is going to go away’…

And certainly not just based off some Google Trends data…

Everyday life: what we think will happen is AI will become so ubiquitous you won’t even notice you’re using it.

Kinda like how we take cars for granted when 120 years ago, people would have been like ‘what the f*ck’ at seeing some metal box going down the road at 20mph.

Things will just become easier and faster and just work in the background, but this is still likely a few years off since the battleground in the VC world right now is how many times companies can stuff ‘AI’ into their pitchdecks rather than utilising AI in the backend…

Public markets: Interestingly though, the AI basket (green) and chipmaker Nvidia (orange) are both indicating a bit of a peak in AI too…

This is likely some broader market condition stuff occurring, but…

A change in price is always the best way to change the narrative

And a nice extended down move might lead people to think the AI fun is done…

🧠 The Big Brain
Bank of Japan Ready To Hike?

Are we about to witness a day that everyone said would never come…?

Remember how the world was supposed to be heading towards Japanification?

Low inflation, low growth, everyone getting old and generally miserable.

Then the pandemic happened and turned everything upside down.

One of the biggest factors in markets is how regimes change…

For the premium guys and girls, we’re taking a deeper look at when and how this regime change might occur for Japan and via which asset class this could benefit the most…

Pro Premium Members: click here to read the piece.

Subscribe to Fink Pro today to read the FULL Big Brain article, every single day (currently 20% off annual subscriptions).

⚡ The Spark
Hospital bed economics pays off…

UK inflation is high because of government intervention… who’d have thought that could happen?

Well… us.

Time to bring up our article on UK disinflation from the summer, which is literally playing out EXACTLY how we had expected…

Where do we go from here?: with UK disinflation taking hold we’re now getting comments from Bailey talking up a lower inflation regime…

He said we should expect a ‘marked fall’ in inflation next month…

Bailey’s not alone either. MUFG analysts reckon UK inflation will be just 3% next year.

Commenters: you will be hard pressed to get anyone to believe that inflation is coming down, though, but that is the way of the world (see my TikTok comments whenever I post ANYTHING mildly positive)…

Landlords worried: But what is very interesting was the below chart mentioned in the Fink Premium chat today…

UK rental growth is also rolling over, inline with the disinflation narrative…

So all that scaremongering of the past few months doesn’t seem to be coming to fruition, although rents are naturally very high still…

Verdict: for inflation to resurge again, there has to be a willing bidder to drive prices up.

With wage growth not responding as it had been, it’s unlikely we have much appetite for further inflation, given global demand conditions.