Cathie Wood Warns of 'AI Reality Check' as Speculative Hype Clouds Long-Term Potential
• Cathie Wood believes an "AI reality check" is coming as investors pour money into anything related to AI, even speculative companies just riding the hype wave
• A small group of "magnificent seven" mega-cap tech stocks drove outsized market gains in 2023, suggesting other areas are underperforming
• Thematic investing based on hot topics like AI carries risks if investors blindly bet on unproven players versus market index funds
• While AI winners exist, much capital has gone to AI but little may be rewarded outside major tech players
• For AI exposure, consider diversified passive funds or equal positions in largest, most proven AI leaders while monitoring returns